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MoneyDollar weaker versus peers on Fed Powell's 'patient' comments

10:55  11 january  2019
10:55  11 january  2019 Source:   reuters.com

Copper steady as US-China talks loom

Copper steady as US-China talks loom Hopes that Chinese measures to boost lending, as well as optimism over trade talks with the United States, have kept copper prices steady.

Fed Chairman Jerome Powell reiterated on Thursday the U. S . central bank has the ability to be patient on monetary policy given that inflation remains stable. "The market has almost priced in that the Fed will not be hiking rates any further. To get the dollar weaker , market now has to expect a rate cut I

The dollar fell versus its major peers on Friday, as investors grew increasingly confident that the U. S . Federal Reserve may hit the pause button on monetary tightening this year. Fed Chairman Jerome Powell reiterated on Thursday the U. S . central bank has the ability to be patient on monetary policy

Dollar weaker versus peers on Fed Powell's 'patient' comments© Reuters/Gary Cameron United States one dollar bills seen on a light table at the Bureau of Engraving and Printing in Washington

The dollar held a soft tone versus its peers on Friday, on rising expectations the U.S. Federal Reserve may hit the pause button on monetary tightening if the economy slows this year.

Fed Chairman Jerome Powell reiterated on Thursday the U.S. central bank has the ability to be patient on monetary policy given that inflation remains stable. Markets are now pricing in no further rate hikes by the Fed this year.

Fed Vice Chair Richard Clarida also struck a dovish tone, further cementing the central bank's willingness to remain patient on the issue of raising rates.

The Australian dollar has gone 'from zero to hero'

The Australian dollar has gone 'from zero to hero' The Australian dollar has seen a significant rebound and early on Monday is trading at its highest level since late December. The AUD/USD has now rallied over 6.5% after plunging to a decade low on Thursday.

The dollar weakened versus major peers such as the euro and yen on Thursday due to growing expectations the Federal Reserve will pause its rate Minutes from the Fed ’ s Dec. 18-19 meeting revealed that several policymakers were in favor of the US central bank keeping rates steady this year.

The Fed chairman also said he sees no near-term risk of a U. S . recession and expects continued momentum in economic data. "There were hawkish elements to his comments , particularly those on the balance sheet, which means that the Fed will continue to tighten policy.

Sentiment was cautious in early Asian trade on a lack of concrete details from the United States and China on any progress made in their trade dispute after a three-day meeting in Beijing. The two sides are more than halfway through a 90-day truce agreed by U.S. President Donald Trump and his Chinese counterpart Xi Jinping.

"The market has almost priced in that the Fed will not be hiking rates any further. To get the dollar weaker, market now has to expect a rate cut...I don't see that happening," said Sim Moh Siong, currency strategist at Bank of Singapore.

Sim added that riskier currencies such as the Australian dollar and New Zealand dollar are likely to see further gains if we get a U.S.-Sino trade deal. The Aussie dollar was last at $0.7185, marginally higher versus the greenback.

$A gains on China-US trade hopes

$A gains on China-US trade hopes The Australian dollar has gotten a boost from a rise in oil prices and easing worries about trade tensions between China and the US.

The dollar rallied from three-month lows, extending gains against the euro and yen, following Fed Chairman Powell ’ s remarks the U.S. central bank intends to further shrink the balance sheet, suggesting it is not done tightening monetary policy just yet.

The Fed chairman' s remarks led to the dollar weakening across the board. SINGAPORE: The dollar weakened against its peers on Thursday after Federal Reserve Chairman Jerome Powell said US interest rates were just below neutral, taken by many investors as a tip that the rate hike cycle was

The dollar index <.DXY> was marginally lower at 95.5 on Friday. The index has fallen around 2.2 percent since mid-December on expectations that a slowdown in growth, both in the United States as well as globally, will restrict the Fed from raising rates in 2019.

Australia, NZ dollars near 2-1/2 week highs on risk-on rally

Australia, NZ dollars near 2-1/2 week highs on risk-on rally Australia, NZ dollars near 2-1/2 week highs on risk-on rally

* Dollar off intra-day lows versus peers , but bias still weak in Asian trade. By Vatsal Srivastava. SINGAPORE, Jan 8 (Reuters) - The dollar struggled for Powell ’ s colleague Raphael Bostic, the Atlanta Fed President, added to the central bank’s dovish tone on Monday. Bostic, who is not a voting

“ Powell ’ s comments were read as too hawkish back in October to some extent his overnight Traders expect more clues on the Fed ’s monetary tightening path from the minutes of the U.S. central bank’s Nov. The dollar index, a gauge of its value versus six major peers , traded steady at 96.84

In 2018, the greenback outperformed its peers, gaining 4.3 percent as the Fed hiked rates four times on the back of a strong domestic economy, falling unemployment and rising wage pressures. But now traders see limited upside in the greenback.

The safe-haven yen strengthened 0.1 percent to 108.32 per dollar, reflecting investors' cautious wait-and-see mode.

The euro gained 0.1 percent at $1.1502, after losing 0.4 percent of its value in the previous session. The single currency has been pressured by a slew of weaker-than-expected economic data, especially from France and Germany.

The European Central Bank is widely expected to remain accommodative in 2019, which should keep a lid on the single currency.

Elsewhere, sterling traded marginally firmer, fetching $1.2752 in early Asian trade with traders focussed on the progress of Brexit.

British Prime Minister Theresa May must win a vote in parliament to get her Brexit deal approved or risk seeing Britain's exit from the European Union descend into chaos. The vote is now due to take place on Jan. 15. The numbers are not in May's favour and her chances of winning the vote look extremely slim.

(Editing by Jacqueline Wong)

Devoted surgeon falls asleep while SQUATTING DOWN after performing six operations without a break... still holding the arm he just re-attached for his last patient.
A Chinese surgeon has been hailed as a hero after working about 20 hours non-stop to save urgent patients. Surgeon Luo Shanpeng fell asleep after re-attaching the severed arm for a migrant worker. He was sleeping while squatting down by the table, still holding the arm he had just re-attached for the patient. He had performed five operations and his sixth surgery lasted for eight hours. 'Seeing this makes my heart ache,' said the nurse who took the picture of her colleague out of respect. The picture has gone viral after appearing on WeChat, a Chinese messaging platform. Luo works for the No.

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