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US Dollar Stabilizes and Bonds Rise with Poor Producer Prices

2019-07-12 05:56 pm | Resource: NEWS | No Views : 39

US Dollar Stabilizes and Bonds Rise with Poor Producer Prices

The US dollar stabilized on Friday as a slight rise in core inflation failed to deter expectations that the Federal Reserve will cut interest rates by the end of July.

Menuchin warns Congress that the United States is approaching the debt ceiling

Treasury Secretary Steve Menuchin told House Speaker Nancy Pelosi on Friday "there is a scenario" of running out of funds for the US government "in early September." He urged them and other congressional leaders in a letter to raise the debt limit before the adjournment on July 26, and the holiday begins on August 5.

Treasury bonds rise due to weak US producer prices

On Friday, traders bought US sovereign debt, leading to lower yields on expectations of a rate cut as the Federal Reserve expressed concerns about underdevelopment and suggested it might ease policy. Although yesterday's data on consumer price growth were relative, today's June update at factory gate levels was more certain that the central bank's action was warranted.

Producer price inflation fell 0.1 percentage point to 1.7 percent, the lowest level since January 2017, while input prices showed a more worrisome trend. The non-processed commodity index fell on an annual basis for the sixth month in a row. The decline reached 11% and energy declined 19%, both the most since May 2016.

US yields fell for two years by 2.8 basis points at 12:14 pm to 1.845%. The 10-year rate dropped by 1.5 points to 2.214% and the 30-year yield fell by one point to 2.651%. The corresponding futures contract rose 0.04%, 0.14% and 0.18%, respectively.

Dollar trading against major currencies
  • The dollar index, which measures the strength of the dollar against a basket of six major currencies, fell 0.1% to 96.6615
  • The greenback was down against the yen, with USD / JPY shedding 0.4% to 108.07.
  • The euro stabilized, with EUR / USD falling at 1.1247
  • The USD / CAD lost 0.2% to 1.3040
  • While the GBP / USD was up 0.3% at 1.2549.

Other analysis

Best Opportunities, Vision and Technical Analysis for the USD/JPY pair 17 April 2019

We offer you the analysis of the US dollar against the Japanese Yen on Wednesday, April 17, 2019 with the most important expectations for the dollar against the Japanese yen on the market. Time frame Used - four hours The USD/JPY is moving in a bullish direction in the near term. USD/JPY is still facing resistance and selling pressure around 112.10 as the USD-JPY closed yesterday's session down below 112.00…

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