NEW YORK Paxos Trust Company launched the first regulated, gold-backed digital token and later this month will debut a stablecoin pegged to the U.S. dollar, after getting approval from New York regulators on Thursday.
NEW YORK The safe-haven dollar and yen fell on Wednesday after global political worries eased with what markets perceived as positive news in Hong Kong, Italy and Britain.
* Hong Kong, Italy, Britain news helps risk appetite * Euro lifted away from 28-month lows, Lagarde comments help * Sterling jumps as UK lower house moves to block no-deal Brexit * Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh (Updates market action, adds quote) By Gertrude Chavez-Dreyfuss NEW YORK, Sept 4 The safe-haven dollar and yen fell on Wednesday after global political worries eased with what markets perceived as positive news in Hong Kong, Italy and Britain. Sterling rallied above $1.22 on Wednesday for the first time since Aug. 30 as investors grew more optimistic after British lawmakers took another step in an attempt to block a no-deal Brexit. The dollar index slid for a second straight session, while the yen, which draws safe-haven bids in times of geopolitical stress, dropped for the first time in four days against the greenback. Risk appetite rose on news that Hong Kong leader Carrie Lam was withdrawing an extradition bill that triggered months of often violent protests. Edward Moya, senior market analyst at OANDA in New York, said the dollar's weakness was triggered by this "risk-on move in Hong Kong that gave Hong Kong equities one of the best moves in a few years." That has boosted appetite for riskier currencies that have generally higher yields, he added. "Everyone has been waiting for this major dollar reversal for quite some time," Moya said. "This is providing a little bit of unwinding of some dollar bullish positions." In Italy, Prime Minister Giuseppe Conte unveiled a new cabinet that united the anti-establishment 5-Star Movement and the centre-left Democratic Party, an unlikely coalition that is expected to improve ties with the European Union. In late U.S. trading, the dollar was last down 0.57% against a basket of major currencies, at 98.438. The yen fell against the dollar, which rose 0.38% to 106.36 yen. It also declined against the euro, which gained 0.89% to 117.32 yen. The euro also rose 0.52% versus the dollar to $1.10295 after comments from Christine Lagarde, who will likely be the European Central Bank's next president, introduced some doubt over the scale of an ECB stimulus package expected next week. Lagarde said highly accommodative monetary policy for a prolonged period was necessary but she added that the bank needed to be mindful of the negative side-effects of such tools. Expectations for an interest rate cut, the relaunch of asset purchases and other ECB measures to stimulate the economy have weighed on the euro. On Tuesday, it hit a 28-month low around $1.0924. Meanwhile, sterling jumped 1.15% to $1.2226, and against the euro it rallied 0.65% to 90.22 pence. The lower house of the British parliament voted on Wednesday to prevent Prime Minister Boris Johnson taking Britain out of the EU without a deal, but he proposed a snap election on Oct. 15, just weeks before Brexit, to free his hands. ======================================================== Currency bid prices at 4:19PM (2019 GMT) Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid Previous Change Session Euro/Dollar EUR= $1.1027 $1.0972 +0.50% -3.85% +1.1037 +1.0969 Dollar/Yen JPY= 106.3300 105.9200 +0.39% -3.56% +106.4300 +105.8400 Euro/Yen EURJPY= 117.29 116.24 +0.90% -7.07% +117.4000 +116.1400 Dollar/Swiss CHF= 0.9807 0.9866 -0.60% -0.07% +0.9883 +0.9799 Sterling/Dollar GBP= 1.2224 1.2084 +1.16% -4.18% +1.2229 +1.2079 Dollar/Canadian CAD= 1.3225 1.3332 -0.80% -3.02% +1.3344 +1.3218 Australian/Doll AUD= 0.6795 0.6757 +0.56% -3.60% +0.6800 +0.6756 ar Euro/Swiss EURCHF= 1.0816 1.0828 -0.11% -3.89% +1.0860 +1.0812 Euro/Sterling EURGBP= 0.9021 0.9078 -0.63% +0.41% +0.9085 +0.9018 NZ NZD= 0.6359 0.6334 +0.39% -5.33% +0.6364 +0.6327 Dollar/Dollar Dollar/Norway NOK= 9.0300 9.1004 -0.77% +4.53% +9.1066 +9.0279 Euro/Norway EURNOK= 9.9598 9.9889 -0.29% +0.54% +9.9935 +9.9605 Dollar/Sweden SEK= 9.7380 9.8197 -0.33% +8.64% +9.8253 +9.7280 Euro/Sweden EURSEK= 10.7410 10.7771 -0.33% +4.65% +10.7771 +10.7320 (Reporting by Gertrude Chavez-Dreyfuss; Additional reporting by Tommy Wilkes in London, Richard Leong in New York Editing by Paul Simao and Sonya Hepinstall)
* Hong Kong, Italy, Britain news helps risk appetite * Euro lifted away from 28-month lows, Lagarde comments help * Dollar weakness helps emerging market currencies * Sterling bounces on bid to stop no-deal Brexit * Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh (Recasts, updates prices, adds comment, FX table, changes byline, dateline; previous LONDON) By Gertrude Chavez-Dreyfuss NEW YORK, Sept 4 The safe-haven dollar and yen fell on Wednesday as risk sentiment improved after global political worries eased with what markets perceived as positive news in Hong Kong, Italy and Britain. The dollar index slid for a second straight session, while the yen, which draws safe-haven bids in times of geopolitical stress, dropped for the first time in four days against the greenback. Risk appetite rose on reports Hong Kong leader Carrie Lam would announce the formal withdrawal of an extradition bill that triggered months of unrest. In Italy, the 5-Star Movement approved a coalition deal with the Democratic Party, paving the way for a new government, while lawmakers opposed to a no-deal Brexit gained the upper hand in Britain, triggering a global equities rally. Edward Moya, senior market analyst at OANDA in New York, said the dollar's weakness was triggered by this "risk-on move in Hong Kong that gave Hong Kong equities one of the best moves in a few years." That has boosted appetite for riskier currencies that have generally higher yields, he added. "Everyone has been waiting for this major dollar reversal for quite some time. It has never come to fruition," Moya said. "This is providing a little bit of unwinding of some dollar bullish positions." In mid-morning trading, the dollar was last down 0.4% against a basket of major currencies, at 98.656. The yen fell against the dollar, which rose 0.3% to 106.27 yen. It also declined against the euro, which gained 0.7% to 117.045 yen. The euro also rose 0.4% versus the dollar to $1.1011 after comments from Christine Lagarde, who will likely be the European Central Bank's next president, introduced some doubt over the scale of an ECB stimulus package expected next week. Lagarde said highly accommodative monetary policy for a prolonged period was necessary but she added that the bank needed to be mindful of the negative side-effects of such tools. Expectations for an interest cut, the relaunch of asset purchases and other ECB measures to stimulate the economy have weighed on the euro. On Tuesday, it hit a 28-month low around $1.0924. YUAN, POUND REBOUND The dollar's weakness helped China's offshore yuan pull away further from record lows plumbed earlier this week. The Chinese currency was last up 0.4% against the dollar, which fell to 7.1511 yuan. The British pound recovered Tuesday's losses, when it hit a three-year low, after the latest parliamentary attempt to stop a no-deal Brexit took a step forward. Sterling bounced 0.9% to $1.2185, and against the euro it rallied 0.4% to 90.45 pence. Lawmakers who defeated Prime Minister Boris Johnson's government on a crucial motion late on Tuesday are expected to introduce a bill in parliament seeking to stop Britain from leaving the European Union on Oct. 31 without transitional arrangements. ======================================================== Currency bid prices at 10:03 AM (1403 GMT) Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid Previous Change Session Euro/Dollar EUR= $1.1009 $1.0972 +0.34% -4.01% +1.1024 +1.0969 Dollar/Yen JPY= 106.2500 105.9200 +0.31% -3.64% +106.3300 +105.8400 Euro/Yen EURJPY= 117.00 116.24 +0.65% -7.30% +117.1400 +116.1400 Dollar/Swiss CHF= 0.9839 0.9866 -0.27% +0.25% +0.9883 +0.9840 Sterling/Dollar GBP= 1.2166 1.2084 +0.68% -4.63% +1.2219 +1.2079 Dollar/Canadian CAD= 1.3278 1.3332 -0.41% -2.63% +1.3344 +1.3268 Australian/Doll AUD= 0.6788 0.6757 +0.46% -3.72% +0.6792 +0.6756 ar Euro/Swiss EURCHF= 1.0836 1.0828 +0.07% -3.71% +1.0860 +1.0825 Euro/Sterling EURGBP= 0.9048 0.9078 -0.33% +0.71% +0.9085 +0.9018 NZ NZD= 0.6347 0.6334 +0.21% -5.51% +0.6362 +0.6327 Dollar/Dollar Dollar/Norway NOK= 9.0583 9.1004 -0.46% +4.86% +9.1066 +9.0530 Euro/Norway EURNOK= 9.9742 9.9889 -0.15% +0.69% +9.9935 +9.9613 Dollar/Sweden SEK= 9.7711 9.8197 -0.18% +9.01% +9.8253 +9.7494 Euro/Sweden EURSEK= 10.7581 10.7771 -0.18% +4.81% +10.7771 +10.7320 (Reporting by Gertrude Chavez-Dreyfuss; Additional reporting by Tommy Wilkes in London Editing by Paul Simao)
NEW YORK While there seems to be no end on the horizon to this year's dramatic rally in U.S. Treasuries that has collapsed yields more than a full percentage point, conditions are ripening for a reversal that could disrupt the market. | Video
NEW YORK U.S. Treasury yields rose on Thursday with 30-year yields climbing from record lows, as hopes on U.S.-China trade talks and a dismal seven-year note auction cooled the recent torrid rally in the bond market.
* China says discussing with U.S. next round of trade talks * U.S. 30-year yields rise from record lows hit on Wednesday * U.S. GDP 2nd estimate for Q2, in line with expectations (Recasts, adds comment, byline, table, updates prices) By Gertrude Chavez-Dreyfuss NEW YORK, Aug 29 U.S. Treasury yields rose on Thursday after two days of declines, as China and the United States said they were discussing further trade talks scheduled for September, encouraging hopes of progress in their long drawn-out conflict. U.S. 30-year yields recovered from record lows hit during the previous session. Yields on other maturities such as benchmark 10-year notes advanced as well, as a relentless rally in Treasuries took a breather, for now. The U.S. 2-year and 10-year yield curve was still inverted on Thursday, with short-dated yields above long-dated ones, but the spread has narrowed a bit -1.8 basis points. An inverted yield curve is widely considered a signal that the economy is headed for recession. China though sounded hopeful on the trade negotiations on Thursday. "The most important thing at the moment is to create necessary conditions for both sides to continue negotiations," China's commerce ministry spokesman Gao Feng said during a weekly briefing, adding China was lodging "solemn representation" with the United States. Stan Shipley, fixed-income strategist, at Evercore ISI in New York said the China news was a positive sign for U.S. Treasury yields. "The fact that China is not going to retaliate, that's good news." In morning trading, U.S. benchmark 10-year Treasury note yields rose to 1.509% from 1.468% late on Wednesday. Since the beginning of the year, 10-year yields have fallen by 118 basis points. Yields on 30-year bonds advanced to 1.988% from 1.939% on Wednesday, rallying from record lows of 1.905% touched the day before. At the short end of the curve, U.S. two-year yields rose to 1.526% from Wednesday's 1.504%. U.S. yields held up well after data showed a second reading of gross domestic product increased at a 2.0% annualized rate. That was revised down from the 2.1% pace estimated last month. The downward revision was in line with economists' expectations. More importantly, growth in consumer spending, which accounts for more than two-thirds of U.S. economic activity, surged at a 4.7% rate in the second quarter. That was the fastest since the fourth quarter of 2014 and was a slight upward revision from the 4.3% pace estimated last month. Paul Ashworth, chief U.S. economist, said the data suggested that "any further slowdown in the third quarter will be modest." August 29 Thursday 10:24AM New York/1424 GMT Price Current Net Yield % Change (bps) Three-month bills 1.945 1.9872 -0.005 Six-month bills 1.84 1.883 0.003 Two-year note 99-245/256 1.522 0.018 Three-year note 100-40/256 1.4458 0.024 Five-year note 99-66/256 1.4045 0.035 Seven-year note 102-176/256 1.465 0.042 10-year note 101-4/256 1.5147 0.047 30-year bond 105-184/256 1.9955 0.056 DOLLAR SWAP SPREADS Last (bps) Net Change (bps) U.S. 2-year dollar swap -0.75 0.50 spread U.S. 3-year dollar swap -4.50 0.50 spread U.S. 5-year dollar swap -6.25 1.25 spread U.S. 10-year dollar swap -10.25 0.75 spread U.S. 30-year dollar swap -41.00 -0.25 spread (Reporting by Gertrude Chavez-Dreyfuss Editing by Chizu Nomiyama and Bernadette Baum)
(Adds details, comment, table) By Gertrude Chavez-Dreyfuss NEW YORK, Aug 23 Speculators' net long dollar position fell to its lowest in more than a year, according to calculations by Reuters and U.S. Commodity Futures Trading Commission data released on Friday. The value of the net long dollar position was $13.327 billion in the week ended Aug. 20, compared with $16.7 billion in the previous week. This week's net long dollar position was the smallest since early July 2018, falling for a third straight week. In a wider measure of dollar positioning that includes net contracts on the New Zealand dollar, Mexican peso, Brazilian real and Russian ruble, the greenback posted a net long position of $10.9 billion in the week ended Aug. 20, compared with $12.31 billion the previous week. The dollar was pressured all week by the continued slide in U.S. Treasury yields and the subsequent inversion in the yield curve, a scenario some analysts believe presages a recession. So far this month, the dollar has weakened by 0.8% against a basket of six major currencies. The dollar was further pummeled on Friday after a series of tweets from President Donald Trump that further escalated trade tensions between the United States and China. Philip Marey, senior U.S. strategist, at Rabobank said by increasing friction with China, Trump will get what he wants and that is: force the Fed to cut interest rates. "There is now a strong feedback loop between trade policy and monetary policy that will force the FOMC to make more insurance cuts in the coming months, most likely in September and October," said Marey. Japanese Yen (Contracts of 12,500,000 yen) $-3.666 billion 20 Aug 2019 Prior week week Long 49,984 51,764 Short 18,830 27,022 Net 31,154 24,742 EURO (Contracts of 125,000 euros) $5.269 billion 20 Aug 2019 Prior week week Long 168,455 167,214 Short 206,432 213,863 Net -37,977 -46,649 POUND STERLING (Contracts of 62,500 pounds sterling) $7.028 billion 20 Aug 2019 Prior week week Long 33,405 33,405 Short 125,823 129,225 Net -92,418 -95,820 SWISS FRANC (Contracts of 125,000 Swiss francs) $1.421 billion 20 Aug 2019 Prior week week Long 7,925 7,760 Short 19,042 20,712 Net -11,117 -12,952 CANADIAN DOLLAR (Contracts of 100,000 Canadian dollars) $-0.979 billion 20 Aug 2019 Prior week week Long 47,368 50,065 Short 34,331 35,865 Net 13,037 14,200 AUSTRALIAN DOLLAR (Contracts of 100,000 Aussie dollars) $4.254 billion 20 Aug 2019 Prior week week Long 32,358 36,304 Short 95,139 99,216 Net -62,781 -62,912 MEXICAN PESO (Contracts of 500,000 pesos) $-2.792 billion 20 Aug 2019 Prior week week Long 147,542 152,707 Short 37,183 35,145 Net 110,359 117,562 NEW ZEALAND DOLLAR (Contracts of 100,000 New Zealand dollars) $1.171 billion 20 Aug 2019 Prior week week Long 21,073 20,500 Short 39,333 33,947 Net -18,260 -13,447 (Reporting by Gertrude Chavez-Dreyfuss; editing by Jonathan Oatis and Cynthia Osterman)
NEW YORK The dollar stumbled on Friday after President Donald Trump ordered U.S. companies to start looking for an alternative to China as Beijing imposed more tariffs on American goods, further exacerbating a prolonged trade war between the world's two largest economies.
* Fed's Powell says Fed to act as appropriate * September rate cut fully priced in * Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh (Recasts, adds analyst comment, Trump's remarks on China, updates prices) By Gertrude Chavez-Dreyfuss NEW YORK, Aug 23 The U.S. dollar dropped broadly on Friday after President Donald Trump ordered U.S. companies to start looking for an alternative to China after Beijing imposed more tariffs on American goods, further escalating tension between the world's two largest economies in a prolonged trade dispute. That triggered mass selling in the dollar, which fell from a three-week high against the euro and to one-week troughs versus the yen and Swiss franc. Benchmark U.S. 10-year Treasury yields also fell sharply. The dollar, however, strengthened against the Chinese yuan in the offshore market, hitting a two-week high. "Our great American companies are hereby ordered to immediately start looking for an alternative to China, including bringing your companies HOME and making your products in the USA," Trump wrote on Twitter. His tweet followed China's earlier move on Friday when it announced retaliatory tariffs against about $75 billion worth of U.S. goods, putting as much as an extra 10% on top of existing rates "Clearly when you look at the U.S. yields and the dollar's reaction, there are concerns that these latest comments from Trump on China will push the U.S. into recession," said Marvin Loh, senior global markets strategist, at State Street in Boston. Trump's comments overshadowed a speech from Federal Reserve Chair Jerome Powell, who did not announce a major stimulus measure to ease a worsening global economic outlook, but set the stage for further interest rate cuts. Powell said the U.S. economy was in a "favorable place" and the Fed would "act as appropriate" to keep the current economic expansion on track. "I don't really know what the market was thinking would be delivered, but if you're betting on another two or three cuts, you wouldn't be dissuaded by this speech based on the headlines," said Richard Franulovich, head of FX strategy at Westpac in New York. Trump, however, was enraged by Powell's speech, saying he wasn't sure who was the bigger enemy, the U.S. central bank chief or Chinese leader Xi Jinping. "As usual, the Fed did NOTHING! It is incredible that they can 'speak' without knowing or asking what I am doing, which will be announced shortly," Trump wrote on Twitter. "We have a very strong dollar and a very weak Fed. I will work 'brilliantly' with both, and the U.S. will do great." In midday trading, the euro rose 0.5% to $1.1134, after earlier touching a three-week low of $1.1052. An index that tracks the dollar against six major currencies was down 0.4% at 97.772. The dollar fell to a one-week low against the yen and was last at 105.46, down 0.9%. It earlier hit a one-week high of 106.73. Against the Chinese yuan, the dollar was up 0.6% at 7.13 yuan, after earlier touching a two-week peak of 7.1332. ======================================================== Currency bid prices at 12:43 PM (1643 GMT) Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid Previous Change Session Euro/Dollar EUR= $1.1134 $1.1078 +0.51% -2.92% +1.1147 +1.1052 Dollar/Yen JPY= 105.4300 106.4200 -0.93% -4.38% +106.7300 +105.3000 Euro/Yen EURJPY= 117.42 117.94 -0.44% -6.97% +118.1500 +117.2900 Dollar/Swiss CHF= 0.9763 0.9835 -0.73% -0.52% +0.9877 +0.9746 Sterling/Dollar GBP= 1.2257 1.2250 +0.06% -3.92% +1.2279 +1.2196 Dollar/Canadian CAD= 1.3319 1.3302 +0.13% -2.33% +1.3338 +1.3277 Australian/Doll AUD= 0.6749 0.6756 -0.10% -4.26% +0.6777 +0.6737 ar Euro/Swiss EURCHF= 1.0874 1.0896 -0.20% -3.38% +1.0928 +1.0860 Euro/Sterling EURGBP= 0.9083 0.9041 +0.46% +1.10% +0.9094 +0.9038 NZ NZD= 0.6391 0.6363 +0.44% -4.84% +0.6409 +0.6366 Dollar/Dollar Dollar/Norway NOK= 8.9659 8.9776 -0.13% +3.79% +9.0137 +8.9333 Euro/Norway EURNOK= 9.9845 9.9449 +0.40% +0.79% +9.9941 +9.9225 Dollar/Sweden SEK= 9.6246 9.6767 -0.03% +7.37% +9.6983 +9.6206 Euro/Sweden EURSEK= 10.7184 10.7215 -0.03% +4.43% +10.7335 +10.6910 (Reporting by Gertrude Chavez-Dreyfuss; Editing by Jonathan Oatis and Bernadette Baum)
Russia and Ukraine swapped dozens of prisoners on Saturday in a carefully-negotiated rapprochement that brought Western praise and could thaw a freeze in relations since Moscow's annexation of the Crimea region in 2014.