Edition:
United States

Richard Leong

UPDATE 1-China, Japan's U.S. Treasuries holdings fall further in September

Nov 16 2018

* China sold most Treasuries in nearly two years in September

UPDATE 1-Speculative U.S. 10-year T-note net shorts decline most in 1-1/2 years -CFTC

Nov 16 2018

* U.S. 2-year, ultra bond net shorts hit record highs * U.S. 10-year Treasury yield reaches 2-week lows (Adds background, details on latest data) By Richard Leong Nov 16 Speculators' net bearish bets on U.S. 10-year Treasury note futures fell by the biggest amount in 1-1/2 years in the latest week, spurred by safe-haven demand for U.S. government debt due to a sharp selloff in global equity prices, according to Commodity Futures Trading Commission data released on Friday. The amount of speculators' bearish, or short, positions in 10-year Treasury futures exceeded bullish, or long, positions by 333,195 contracts on Nov. 13, according to the CFTC's latest Commitments of Traders data. This was the biggest weekly drop in net shorts in 10-year T-notes since a drop of 255,042 contracts on April 25, 2017. A week earlier, speculators held 539,186 net short positions in 10-year T-note futures. The benchmark 10-year Treasury yield fell to an over two-week low on Friday, at 3.066 percent, on safe-haven demand for bonds stemming from losses on Wall Street and a decline in oil prices. The Treasury yield decline followed dovish comments from a number of Federal Reserve officials. By investor groups, asset managers pared their net longs in 10-year T-notes for a second week to 1.098 million contracts, while dealers' net positions reached a record peak at 327,355 contracts. Hedge funds reduced their net shorts in 10-year T-notes from a six-week peak to 815,407 contracts. Among other T-note futures, speculative net shorts in two-year T-note futures increased to an all-time high at 362,374 contracts on Tuesday. Speculative net shorts in ultra bond futures reached a record high at 280,858 contracts on Tuesday. Below is a table of the speculative positions in Treasury futures on the Chicago Board of Trade and in Eurodollar futures on the Chicago Mercantile Exchange in the latest week: U.S. 2-year T-notes (Contracts of $200,000) 13 Nov 2018 Prior week week Long 441,734 451,315 Short 804,108 784,795 Net -362,374 -333,480 U.S. 5-year T-notes (Contracts of $100,000) 13 Nov 2018 Prior week week Long 595,644 620,319 Short 1,166,186 1,176,698 Net -570,542 -556,379 U.S. 10-year T-notes (Contracts of $100,000) 13 Nov 2018 Prior week week Long 666,291 586,963 Short 999,486 1,126,149 Net -333,195 -539,186 U.S. T-bonds (Contracts of $100,000) 13 Nov 2018 Prior week week Long 102,190 110,606 Short 175,455 181,837 Net -73,265 -71,231 U.S. Ultra T-bonds (Contracts of $100,000) 13 Nov 2018 Prior week week Long 100,035 98,060 Short 380,893 358,009 Net -280,858 -259,949 Eurodollar (Contracts of $1,000,000) 13 Nov 2018 Prior week week Long 1,079,595 1,082,454 Short 3,674,994 3,549,455 Net -2,595,399 -2,467,001 Fed funds (Contracts of $1,000,000) 13 Nov 2018 Prior week week Long 193,368 163,155 Short 225,819 226,074 Net -32,451 -62,919 (Reporting by Richard Leong Editing by Leslie Adler and Rosalba O'Brien)

Dollar falls as Fed officials ring note of caution, pound bounces

Nov 16 2018

NEW YORK The dollar fell broadly on Friday in the wake of cautious comments from two U.S. Federal Reserve officials about global economic growth, while sterling rose following losses tied to fears about a Brexit deal.

FOREX-Fed officials' caution weakens dollar, sterling rebounds

Nov 16 2018

* Fed's Clarida, Kaplan warn of risk of slowing global growth * Dollar hits one-week low vs euro, two-week trough vs yen * Sterling recovers as key Brexiteers back UK PM May's plan * Graphic: World FX rates in 2018 http://tmsnrt.rs/2egbfVh (Updates market action, changes dateline; previous LONDON) By Richard Leong NEW YORK, Nov 16 The dollar fell broadly on Friday in the wake of cautious comments from two U.S. Federal Reserve officials about global economic growth, while sterling rose following losses tied to fears about a Brexit deal. The greenback fell to one-week lows versus the euro and a two-week trough against the yen following comments from Fed Vice Chair Richard Clarida, who told CNBC television he saw some evidence of global growth cooling. Clarida also noted key U.S. short-term borrowing rates are close to neutral and said being at neutral "makes sense." Traders perceived his comments to mean the No. 2 Fed official may be open for the Fed to pause its rate-hike campaign sooner than previously thought. "It's the market's anticipation that the Fed may stop at neutral," said Paresh Upadhyaya, director of currency strategy at Amundi Pioneer Investments in Boston. Separately, Dallas Federal Reserve President Robert Kaplan said on Fox Business that global growth will be a bit of a headwind, which may spread to the United States. Clarida and Kaplan's remarks spurred selling in the dollar, which fell 0.65 against the euro at $1.1405. Against the yen, the greenback was down 0.71 at 112.81 yen. The dollar also weakened against sterling, reversing some of Thursday's gains. The pound briefly recovered against the euro following its worst day versus the single currency in about 25 months, as U.K. Prime Minister Theresa May clinched backing from some key Brexit supporters with her draft plan for Britain to leave the European Union in March. A string of cabinet ministers quit on Thursday in protest over the terms in May's Brexit proposal. The resignations sent the pound reeling. Sterling was last up 0.47 percent versus the dollar at $1.2835 but was down 0.25 percent versus the euro at 88.89 pence. The euro was also bolstered by hopes that Italian Prime Minister Giuseppe Conte was looking to work with the EU over his government's 2019 budget, which has been rejected by Brussels. Meanwhile, currency traders are keeping an eye on concrete signs that Washington and Beijing are seeking to de-escalate their trade dispute. A Financial Times report on Thursday said U.S. Trade Representative Robert Lighthizer had told some industry executives that another round of U.S. tariffs on Chinese imports had been put on hold. A U.S. Trade Representative spokesperson later denied the report. The yuan in offshore trading was steady at 6.9235 per dollar. ======================================================== Currency bid prices at 11:31AM (1631 GMT) Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid Previous Change Session Euro/Dollar EUR= $1.1405 $1.1326 +0.70% -4.93% +1.1412 +1.1321 Dollar/Yen JPY= 112.8100 113.6200 -0.71% +0.12% +113.6400 +112.6800 Euro/Yen EURJPY= 128.67 128.74 -0.05% -4.82% +128.7700 +128.1500 Dollar/Swiss CHF= 1.0007 1.0069 -0.62% +2.71% +1.0087 +1.0008 Sterling/Dollar GBP= 1.2842 1.2774 +0.53% -4.96% +1.2877 +1.2761 Dollar/Canadian CAD= 1.3154 1.3175 -0.16% +4.59% +1.3186 +1.3127 Australian/Doll AUD= 0.7313 0.7276 +0.51% -6.26% +0.7319 +0.7251 ar Euro/Swiss EURCHF= 1.1415 1.1405 +0.09% -2.34% +1.1434 +1.1399 Euro/Sterling EURGBP= 0.8878 0.8866 +0.14% -0.06% +0.8889 +0.8826 NZ Dollar/Dolar NZD= 0.6857 0.6830 +0.40% -3.22% +0.6861 +0.6800 Dollar/Norway NOK= 8.4413 8.4878 -0.55% +2.86% +8.4949 +8.4259 Euro/Norway EURNOK= 9.6304 9.6173 +0.14% -2.23% +9.6356 +9.6033 Dollar/Sweden SEK= 9.0122 9.0624 +0.10% +9.88% +9.0710 +8.9986 Euro/Sweden EURSEK= 10.2800 10.2700 +0.10% +4.48% +10.2880 +10.2598 (Additional reporting by Tom Finn, Tommy Wilkes in London; Editing by Andrew Roche and Dan Grebler)

Brexit fears pummel sterling; lift yen, dollar

Nov 15 2018

NEW YORK Sterling tumbled on Thursday after British ministers resigned in protest against a draft Brexit agreement, rekindling fears of a chaotic departure for Britain from the European Union in 4-1/2 months.

FOREX -Sterling sags on Brexit fears, traders favor yen, dollar

Nov 15 2018

* UK Brexit minister's resignation hits pound * Brexit uncertainty feeds safe-haven demand for dollar, yen * Dollar's gains limited by cautious remarks from Fed's Powell * Aussie gains after strong jobs data, Kiwi follows * Graphic: World FX rates in 2018 http://tmsnrt.rs/2egbfVh (Updates market action, changes dateline, previous LONDON) By Richard Leong NEW YORK, Nov 15 The sterling tumbled on Thursday after British ministers resigned in protest against a draft Brexit agreement, rekindling fears of a chaotic departure for Britain from the European Union in 4-1/2 months. Traders flocked into the perceived safety of the dollar and yen as the pound swung wildly this week over Brexit. On Thursday, British Prime Minister Theresa May said she won the backing of her senior ministers for a draft divorce deal, but many in her government are unconvinced and on Friday her Brexit minister Dominic Raab, and other ministers, resigned. "Heightened political uncertainty in the UK kept the pound on volatile ground," Western Union Business Solutions analysts wrote in a research note. "Sterling was spellbound, alternating between gains and losses, after Britain’s Brexit minister resigned." Raab's resignation left May battling for survival as well as trying to win over her Conservative Party to support the EU withdrawal agreement. At 11:02 a.m. (1602 GMT), sterling was down 1.65 percent at $1.2768. Against the euro, it was 1.71 lower at 88.57 pence. Reports out of Italy that Prime Minister Giuseppe Conte was looking to work with the EU over his government's 2019 budget, which has been rejected by Brussels, to avert massive fines had earlier helped support Italian government bond markets and the euro. The single currency held steady versus the greenback at $1.131, but it fell 0.19 percent to 128.235 yen. "The dollar is benefiting from the sterling crash," said Manuel Oliveri, FX strategist at Credit Agricole. An index that tracks the greenback against six major currencies was up 0.3 percent at 97.098. It touched a 16-month high of 97.693 on Monday. The dollar was down 0.21 percent at 113.38 yen. Analysts said the dollar's gains on the back of the sterling slump were contained after some cautious comments about the economic outlook from Federal Reserve chairman Jerome Powell overnight. The Australian dollar rose 0.32 percent to $0.7259 on stronger-than-expected domestic jobs data. The New Zealand dollar was up 0.44 percent. ======================================================== Currency bid prices at 11:08AM (1608 GMT) Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid Previous Change Session Euro/Dollar EUR= $1.1309 $1.1308 +0.01% -5.73% +1.1351 +1.1271 Dollar/Yen JPY= 113.3600 113.6100 -0.22% +0.61% +113.6700 +113.1100 Euro/Yen EURJPY= 128.20 128.49 -0.23% -5.16% +128.8400 +127.7800 Dollar/Swiss CHF= 1.0065 1.0056 +0.09% +3.30% +1.0076 +1.0037 Sterling/Dollar GBP= 1.2767 1.2994 -1.75% -5.51% +1.3029 +1.2752 Dollar/Canadian CAD= 1.3220 1.3237 -0.13% +5.11% +1.3249 +1.3209 Australian/Doll AUD= 0.7259 0.7234 +0.35% -6.95% +0.7298 +0.7229 ar Euro/Swiss EURCHF= 1.1383 1.1378 +0.04% -2.63% +1.1407 +1.1346 Euro/Sterling EURGBP= 0.8857 0.8706 +1.73% -0.29% +0.8864 +0.8699 NZ Dollar/Dolar NZD= 0.6817 0.6797 +0.29% -3.80% +0.6827 +0.6788 Dollar/Norway NOK= 8.4893 8.5047 -0.18% +3.44% +8.5286 +8.4649 Euro/Norway EURNOK= 9.6012 9.6191 -0.19% -2.51% +9.6314 +9.5893 Dollar/Sweden SEK= 9.0546 9.0837 -0.31% +10.40% +9.1145 +9.0362 Euro/Sweden EURSEK= 10.2407 10.2730 -0.31% +4.08% +10.2847 +10.2407 (Additional reporting by Tommy Wilkes, Saikat Chatterjee in LONDON Editing by David Stamp and Raissa Kasolowsky)

Sterling rises as May gets cabinet support on Brexit deal

Nov 14 2018

LONDON/NEW YORK Sterling rose in volatile trading on Wednesday after UK Prime Minister Theresa May received the backing of her cabinet for a draft Brexit deal, but she will now need to get the parliament to approve the agreement. | Video

FOREX-Euro, pound rise as trader eye Brexit, Italy

Nov 14 2018

* Italy makes no major changes on budget plan to EU * Sterling traders brace for Brexit cabinet meeting * Dollar slips further from 16-month peak after in-line CPI * Swedish crown falls vs euro on weak inflation data * Graphic: World FX rates in 2018 http://tmsnrt.rs/2egbfVh (Updates market action, changes dateline, previous LONDON) By Richard Leong NEW YORK, Nov 14 The euro and sterling rose on Wednesday as traders monitor the latest developments between the European Union and Britain on the latter's departure from the economic bloc, and the EU and Italy on the resubmission of the latter's 2019 budget. Hopes the U.K. parliament would approve a draft accord for Brexit have bolstered the two currencies, while the euro has been bogged down by uncertainty on how EU officials would react to Italy's latest fiscal proposal after they rejected them last month for violation of certain EU rules. "The focus is on Brexit and Italy. They have been putting pressure on sterling and the euro the past few days," said Minh Trang, senior currency trader at Silicon Valley Bank in Santa Clara, California. Italy re-submitted its draft budget for next year to the European Commission with the same growth and deficit assumptions, but with falling debt, the new draft showed. Meanwhile, U.K. Prime Minister Theresa May will meet with her cabinet when she will try to sell her Brexit agreement. At 11:31 a.m. (1631 GMT), the euro was up 0.23 percent at $1.1314, erasing an earlier loss tied partly to weak regional growth data. Euro zone growth rose by 0.2 percent in the third quarter, official data showed, confirming its earlier preliminary flash estimate from Oct. 30. Against the sterling, the single currency was down 0.18 percent at 86.895 pence. The pound was up 0.4 percent at $1.3021. A stronger euro and pound pushed the dollar lower as it retreated further from a 16-month peak against a basket of currencies. Traders brushed off a government report on U.S. consumer prices that showed domestic inflation grew at a moderate annual pace in October, although they recorded their biggest monthly increase in nine months as expected. An index that tracks the dollar versus a basket of six major currencies was down 0.33 at 96.986 after hitting a 16-month high of 97.693 on Monday. Among other major currencies, the Swedish crown was little changed on the day after losing as much as 0.7 percent versus the euro to 10.278 crowns after weaker-than-expected inflation. ======================================================== Currency bid prices at 11:36AM (1636 GMT) Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid Previous Change Session Euro/Dollar EUR= $1.1313 $1.1289 +0.21% -5.69% +1.1347 +1.1263 Dollar/Yen JPY= 113.7000 113.8000 -0.09% +0.91% +114.0000 +113.6800 Euro/Yen EURJPY= 128.63 128.46 +0.13% -4.85% +129.2100 +128.2900 Dollar/Swiss CHF= 1.0066 1.0068 -0.02% +3.32% +1.0104 +1.0058 Sterling/Dollar GBP= 1.3018 1.2971 +0.36% -3.66% +1.3035 +1.2887 Dollar/Canadian CAD= 1.3232 1.3234 -0.02% +5.21% +1.3263 +1.3207 Australian/Doll AUD= 0.7214 0.7217 -0.04% -7.52% +0.7237 +0.7188 ar Euro/Swiss EURCHF= 1.1387 1.1368 +0.17% -2.58% +1.1423 +1.1362 Euro/Sterling EURGBP= 0.8687 0.8702 -0.17% -2.20% +0.8740 +0.8668 NZ Dollar/Dolar NZD= 0.6790 0.6763 +0.40% -4.18% +0.6800 +0.6758 Dollar/Norway NOK= 8.5000 8.4948 +0.06% +3.57% +8.5403 +8.4662 Euro/Norway EURNOK= 9.6169 9.5930 +0.25% -2.35% +9.6385 +9.5853 Dollar/Sweden SEK= 9.0839 9.0526 +0.53% +10.76% +9.1253 +9.0339 Euro/Sweden EURSEK= 10.2769 10.2230 +0.53% +4.46% +10.2978 +10.2137 (Additional reporting by Tommy Wilkes in LONDON Editing by Hugh Lawson and Chizu Nomiyama)

Hopes for Brexit deal lift euro and sterling

Nov 13 2018

NEW YORK The euro and sterling rose on Tuesday as Britain and the European Union agreed on a preliminary text for the nation to leave the economic bloc in a bid to avoid a chaotic divorce that would disrupt the region's economy.

FOREX-Euro, sterling gain on hopes for Brexit deal

Nov 13 2018

* Dollar index retreats from 16-month peak * Sterling hits 6-1/2 peak versus euro on hopes for Brexit deal * Graphic: World FX rates in 2018 http://tmsnrt.rs/2egbfVh (Updates market action, changes dateline, previous LONDON) By Richard Leong NEW YORK, Nov 13 The euro and sterling rose on Tuesday following comments from a British official that signaled Britain and the European Union are close to clinching an agreement for the nation to leave the economic bloc as negotiators seek to avoid missing a deadline. A stronger euro and sterling spurred profit-taking in the dollar, which reached a 16-month peak against a basket of currencies on Monday. Uncertainty over the terms of Brexit has bogged down both currencies as a deal is required to keep business open between the EU and the world's fifth-biggest economy. The euro's gain was limited by concerns about Italy's budget proposals and downbeat German investor sentiment data, traders said. "News that the EU and U.K. nearly have a Brexit deal in place is injecting short-term flows into the common currency," said Viash Sreemuntoo, corporate trader at XE in Toronto. Encouraging comments on Brexit negotiations lifted the pound to a 6-1/2 month peak versus the euro. Sterling reversed much of Monday's loss against the dollar. "We are almost within touching distance now," British Cabinet Office Minister David Lidington, who is Prime Minister Theresa May's de facto deputy, told BBC radio. At 10:49 a.m. (1549 GMT), the euro was up 0.52 percent at $1.12770. It had fallen to $1.1216, the lowest since June 2017. The common currency was down 0.29 percent at 87.05 pence after touching 86.82 pence earlier Tuesday, which was the lowest since April 26. Sterling was up 0.89 percent at $1.2964 following a nearly 1 percent drop on Monday. An index that tracks the dollar versus the euro, sterling, yen and three other currencies was 0.28 percent lower at 97.269, easing below a 16-month high of 97.693 reached on Monday. In contrast to the latest news on Brexit, Italy's budget proposals remain a drag on the euro. Tuesday is the deadline for Italy, the euro zone's third- biggest economy, to resubmit its budget plans to the EU after a showdown between Rome and Brussels over the government's 2019 spending plans. The European Commission rejected Italy's draft fiscal plan last month and has threatened to impose penalties if it is not revised to conform with EU regulations - something Rome has indicated it is unwilling to do. The International Monetary Fund on Tuesday warned the government's stimulus plan would leave Italy vulnerable. The tension between Rome and Brussels has raised fears about Italy's membership in the euro zone. "Italy is the big test case for the euro," said Joachim Fels, global economic advisor at PIMCO at the Reuters Global Investment Outlook Summit in New York. "That risk is not going away anytime soon." ======================================================== Currency bid prices at 10:49AM (1549 GMT) Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid Previous Change Session Euro/Dollar EUR= $1.1277 $1.1217 +0.53% -5.99% +1.1281 +1.1217 Dollar/Yen JPY= 113.8400 113.8300 +0.01% +1.04% +114.1400 +113.5900 Euro/Yen EURJPY= 128.39 127.69 +0.55% -5.02% +128.5000 +127.5000 Dollar/Swiss CHF= 1.0085 1.0107 -0.22% +3.51% +1.0128 +1.0085 Sterling/Dollar GBP= 1.2952 1.2847 +0.82% -4.14% +1.2979 +1.2842 Dollar/Canadian CAD= 1.3246 1.3245 +0.01% +5.32% +1.3259 +1.3215 Australian/Doll AUD= 0.7208 0.7172 +0.50% -7.60% +0.7218 +0.7165 ar Euro/Swiss EURCHF= 1.1376 1.1339 +0.33% -2.68% +1.1382 +1.1337 Euro/Sterling EURGBP= 0.8704 0.8729 -0.29% -2.02% +0.8742 +0.8682 NZ Dollar/Dolar NZD= 0.6754 0.6708 +0.69% -4.69% +0.6756 +0.6709 Dollar/Norway NOK= 8.4829 8.5169 -0.40% +3.36% +8.5252 +8.4743 Euro/Norway EURNOK= 9.5686 9.5561 +0.13% -2.84% +9.5810 +9.5476 Dollar/Sweden SEK= 9.0616 9.1472 -0.44% +10.48% +9.1543 +9.0543 Euro/Sweden EURSEK= 10.2183 10.2630 -0.44% +3.85% +10.2810 +10.2110 (Additional reporting by Saikat Chatterjee in LONDON Editing by Andrea Ricci)

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