Dollar Sinks To Near 2-Year Low Against Euro

The dollar lost ground against all of its major rivals Friday afternoon. The buck has been sinking against both the Euro and the Japanese Yen for the majority of the week and has now reached nearly a 2-year low against the Euro. Political concerns have contributed to the dollar’s slide this week, as well as hawkish comments from European Central Bank Chief Mario Draghi, suggesting a possible policy tweak. U.S. special counsel Robert Mueller is reportedly expanding the Russia probe

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Canadian Dollar Advances As CPI, Retail Sales Beat Forecasts

The Canadian dollar climbed against its major opponents in the European session on Friday, after better-than-expected domestic consumer price inflation for June and retail sales for May. Data from Statistics Canada showed that consumer price index was flat on a seasonally adjusted monthly basis, following a 0.2 percent slide in May. Economists were looking for a 0.1 percent drop. Core CPI, excluding food and energy, rose 0.2 percent on a seasonally adjusted monthly basis, from a 0.1 percent gain last

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Treasuries Move Higher Amid Drop In The Value Of The Dollar

Treasuries showed a notable move to the upside during trading on Friday after closing nearly flat for two straight days. Bond prices moved higher in morning trading and remained firmly positive throughout the afternoon. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, fell by 3.4 basis points to 2.232 percent. The decrease extended a recent downward trend by the ten-year yield, which fell to its lowest closing level in over three weeks.

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UAE welcomes Qatari decision to amend anti-terrorism laws

The United Arab Emirates on Friday welcomed Qatar’s decision to amend its anti-terrorism laws, in one of the first positive signs from the UAE and three other Arab countries since they imposed sanctions on Doha last month. In a move to counter their accusations of supporting terrorism, which it denies, Qatar has set rules for defining terrorism, freezing funding and terrorism financing and established national terrorism lists. “The Qatari decree to amend the anti-terrorism law is a positive step to

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Treasuries Close Nearly Flat For Second Straight Day

After an early move to the upside, treasuries pulled back in afternoon trading on Thursday to close roughly flat for the second straight day. Bond prices came under pressure in afternoon trading following a notable move to the upside in the morning. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, edged down by less than a basis point to 2.266 percent. The roughly flat close by treasuries came following the European Central Bank’s monetary

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China Home Prices Rise In June

House prices in majority of the Chinese cities increased in June, figures from the National Bureau of Statistics showed Tuesday. On a monthly basis, house prices climbed 60 cities out of 70 surveyed by the government. It fell in 6 cities and remained flat in 4 cities. The highest rise in house prices was noted in Luoyang, by 2.3 percent and the steepest decline was seen in Sanya, by 0.8 percent. On an annual basis, prices of new homes grew

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Qatar spent billions of dollars in support of specific individuals and organisations

Qatar spent billions of dollars in support of specific individuals and organisations, including those linked to Al Qaeda, Dr. Anwar bin Mohammed Gargash, Minister of State for Foreign Affairs, has said. Dr. Gargash made the remarks during his speech, on Monday, at the Royal Institute of International Affairs (Chatham House) in London. Speaking on the “UAE View of the GCC Crisis: What Happened and What Happens Next?” he said that the UAE was concerned about Qatar right from the early

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U.S. Dollar Falls Against Majors

The U.S. dollar weakened against other major currencies in the Asian session on Tuesday. The U.S. dollar fell to a 14-month low of 1.1538 against the euro, nearly a 3-week low of 111.99 against the yen and more than a 2-week low of 0.9588 from yesterday’s closing quotes of 1.1478, 112.61 and 0.9624, respectively. Against the pound and the Canadian dollar, the greenback edged down to 1.3099 and 1.2645 from yesterday’s closing quotes of 1.3052 and 1.2695, respectively. If the

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Australian Dollar Recovers After RBA Minutes

The Australian dollar recovered from recent lows against other major currencies in the Asian session on Tuesday, after the Reserve Bank of Australia released the minutes of the July 4 meeting that showed an upbeat assessment of the economy. The RBA minutes showed that the members of the policy board assessed the country’s economic recovery has slowed in recent months. That prompted the members to maintain a level of careful monitoring for economic conditions, although the depreciating currency rate continues

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UAE capital ranked second among world’s best cities

Abu Dhabi has been named as the second best city worldwide to visit, live and do business in, according to an international survey by market research firm Ipsos, moving up two places from last survey. New York maintained the world’s top spot in Ipsos City Index from a list of 60 cities that included Toronto, Sydney, Moscow and Hong Kong. The research firm interviewed more than 18,000 people in 26 countries worldwide for the index. Among the survey participants, 23

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U.S. Dollar Weakens Against Most Majors

The U.S. dollar declined against its most major opponents in European trading on Monday, weighed by lowering expectations for another Fed rate hike this year following weak inflation data released last week. The consumer price index was unchanged in June, contradicting expectations for an uptick of 0.1 percent, according to a report by the Labor Department. The CPI data coupled with weak retail sales and consumer sentiment figures dimmed prospects for a Fed rate hike later this year. Odds for

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Eurozone Inflation Slows As Estimated

Eurozone inflation slowed to a 6-month low in June as estimated, final data from Eurostat showed Monday. Inflation eased slightly to 1.3 percent in June from 1.4 percent in May. The rate came in line with the flash estimate published on June 30. This was the weakest rate seen so far this year. The European Central Bank targets inflation ‘below, but close to 2 percent’. On a monthly basis, the harmonized index of consumer prices remained flat in June. Core

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The Qatari crisis is worsening and interest rates become the highest in 7 years in banks

For fear of further sanctions, Qatari banks are selling their loans at a large discount, Gulf banking sources and Al Arabiya reported, with additional penalties likely to include strict controls in terms of banking transactions and remittances, A major shift in loan payments to them within the county states. On the basis of these sources, the sources said that the UAE banks are buying these loans granted by Qatari banks at low prices due to the discount on fees, and

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Indonesia Exports Fall Unexpectedly In June

Indonesia’s exports and imports contracted unexpectedly in June from a year ago, data published by the Central Statistical Agency showed Monday. Exports fell 11.82 percent year-over-year in June, confounding economists’ expectations for an increase of 7.28 percent. Similarly, imports plunged 17.21 percent annually in June, while it was forecast to rise by 9.25 percent. On a monthly basis, both exports and imports slumped by 18.82 percent and 27.26 percent, respectively in June. However, the trade balance showed a surplus of

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Denmark PPI Inflation Slows In June

Denmark’s producer price inflation eased sharply in June, after accelerating in the previous month, figures from Statistics Denmark showed Monday. The producer price index rose 0.5 percent year-over-year in June, much slower than the 4.0 percent climb in May. The measure has been rising since November last year. Both domestic and foreign market producer prices increased by 0.6 percent and 0.3 percent, respectively in June from a year ago. On a monthly basis, producer prices dropped 1.3 percent from May,

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Bitcoin slides to $1,900

Prices of Bitcoin and Ethereum extended their recent decline on Sunday, with both sinking to fresh multi-month lows amid ongoing chatter of a cryptocurrency bubble. Bitcoin fell below the $2,000-level for the first time in several weeks as investors remained wary of initiating large position amid several warnings from analysts that the digital currency has peaked since hitting $3,000 last month. The cryptocurrency was at $1,909.10 on the U.S.-based GDAX exchange operated by Coinbase in early trade North American trade,

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Global markets end the week higher

Most major global markets closed the week higher on Friday The Dow and S&P 500 both closed at new records capping a good week.The dollar weakened and government bond yields fell to multi-week lows on Friday after a benign reading of U.S. inflation in June and soft retail demand raised doubts the Federal Reserve would increase interest rates later this year. In the Middle East, stock markets extended gains on Thursday, helped by a rise in oil prices.In the United

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IMF strongly supports Egypt’s economic reforms

The International Monetary Fund (IMF) strongly supports Egypt’s economic reform programme. “Measures taken by the Egyptian government, such as increasing the prices of fuel and electricity and imposing the value-added tax, should have a positive impact on the budget. “Such measures help achieve initial surplus in the budget of the Egyptian government for the first time in 10 years,” he added, describing it as “an important achievement.” Increasing the prices of fuel and electricity was part of the Egyptian government’s

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PRECIOUS-Gold hits near 2-week high after U.S. data disappoints

Gold prices jumped 0.4 percent to the highest level in nearly two weeks on Friday after data pointed to weak U.S. inflation, reaffirming doubts that the U.S. central bank would again hike interest rates this year. U.S. consumer prices were unchanged in June and retail sales fell for a second straight month. Bond yields dipped and the dollar index slid to their lowest level since September 2016 after the weaker-than-expected figures. Spot gold gained 0.96 pct at $1,228.61 per ounce

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Egyptian economy grows 4.3% in third quarter of 2016/17

Egypt’s gross domestic product grew 4.3 percent in the third quarter of the 2016-17 fiscal year compared with the same period the previous year, said Planning Minister Hala al-Saeed on Thursday, predicting a growth rate of 4 percent by year-end. The climb is a result of growth in several industries, including communication, tourism and manufacturing, Saeed added at a press conference. Egypt’s economy has been struggling since a 2011 uprising drove foreign investors and tourists away, but the government hopes

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Dollar Lost Ground After Flood Of Economic Reports

The dollar is down against all of its major rivals Friday afternoon. Investors were confronted with a large number of U.S. economic reports this morning, the bulk of which proved disappointing. The flat inflation data and the unexpected drop in retail sales dampened expectations for a faster rate hike by the Federal Reserve. A report released by the Commerce Department on Friday showed U.S. retail sales unexpectedly decreased for the second consecutive month in June. The Commerce Department said retail

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Crude Oil Jumps 5.2% This Week

The rally in crude oil prices continued Friday on a weaker dollar and hopes the Federal Reserve will goose the U.S. economy with low interest rates for the foreseeable future. With inflation sagging, the Federal Reserve will find it hard to make the case for further interest rate hikes. The central bank has said it intends to raise rates once more this year and three times in 2018, but analysts now regard this as too ambitious. The Labor Department said

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Treasuries Close Higher Following Slew Of Economic Data

Following the pullback seen in the previous session, treasuries moved back to the upside during trading on Friday. Bond prices gave back some ground after an early rally but remained in positive territory. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, fell by 2.9 basis points to 2.319 percent. The higher close by treasuries came following the release of several key economic reports, with the data suggesting that the Federal Reserve will not be

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Most Asian Stock Markets Trade Higher, Australian Dollar Rises

The Australian dollar strengthened against other major currencies in the Asian session on Friday, as most Asian stock markets traded higher, though gains are modest in most markets. Dovish comments from Federal Reserve Chair Janet Yellen and optimism about corporate earnings lifted investor sentiment. Federal Reserve Chair Janet Yellen’s second day of testimony on Capitol Hill also attracted attention when she said gradual interest rate hikes are appropriate over the next few years. Crude oil delivery for August is up

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Qatargas asks suppliers to set up local offices amid Arab boycott

State-run Qatargas, the world’s largest producer of liquefied natural gas (LNG), has asked its suppliers to set up local operations in Qatar in an apparent bid to shield the Gulf state from further economic sanctions threatened by its neighbours. Saudi Arabia, Bahrain, the United Arab Emirates and Egypt cut diplomatic ties and severed transport links with Qatar in June, accusing Doha of supporting terrorism. Qatar denies this. The feud threatens to undermine the region’s efforts to position itself as an

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High living costs as food, travel prices shoot up in Qatar

Living costs in Qatar have become far more expensive following boycott by all of Saudi Arabia, the UAE, Bahrain and Egypt, Al Arabiya’s sister news channel, Al Hadath reported on Wednesday. Food prices have doubled and at times went up 10 times if compared to costs prior to the boycott, which started in early June. Airline tickets have also soared as it became compulsory for travelers to leave to a third country to reach their destinations. General Authority of Civil

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Top U.S. diplomat ends talks in Gulf; no sign Qatar crisis resolved

U.S. Secretary of State Rex Tillerson ended talks with ministers from Saudi Arabia and three Arab allies on Wednesday over how to end a month-long rift with Qatar, but there was no immediate word of any breakthrough. Tillerson returned to Kuwait, the mediator between the feuding Gulf countries, without making any statement on his talks in the Saudi Red Sea city of Jeddah. He had signed a U.S.-Qatari accord on terrorism financing on Wednesday, but Qatar’s opponents said it fell

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U.S. Dollar Falls On Trump Jr. Email Scandal

The U.S. dollar weakened against other major currencies in the Asian session on Wednesday on news that Donald Trump Jr. released a chain of emails that led to his meeting with a Russian lawyer and indicate the Kremlin’s support for President Donald Trump’s campaign. Traders also remain cautious ahead of Federal Reserve Chair Janet Yellen’s Congressional testimony later in the day. Her comments could have a significant impact on the outlook for interest rates ahead of the central bank’s monetary

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Oil prices jump on falling US fuel inventories

Oil prices rose more than 1.5 percent on Wednesday, extending gains from the previous day as the U.S. government cut its crude production outlook for next year and as fuel inventories plunged. Brent crude futures were up 76 cents, or 1.6 percent, at $48.28 per barrel by 0429 GMT, while U.S. West Texas Intermediate (WTI) crude futures were at $45.82 per barrel, up 78 cents, or 1.7 percent. Both settled about 1.4 percent higher on Tuesday. “The oil price… climbed

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Australian Dollar Rises Against Most Majors

The Australian dollar strengthened against most major currencies in the Asian session on Wednesday. The Australian dollar rose to a 1-1/2-month high of 1.0596 against the NZ dollar, from yesterday’s closing value of 1.0570. Against the U.S. and the Canadian dollars, the aussie advanced to 8-day highs of 0.7664 and 0.7664 from yesterday’s closing quotes of 0.7637 and 0.9860, respectively. The aussie edged up to 1.4978 against the euro, from yesterday’s closing value of 1.5013. If the aussie extends its

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Pound Declines Against Majors

The pound declined against its key counterparts in early New York deals on Tuesday, after the Bank of England Deputy Governor Ben Broadbent warned that a significant drop in trade with the Europe after Brexit would harm the U.K. and increase costs. “A significant curtailment of trade with Europe would force the U.K. to shift away from producing the things it’s been relatively good at, and therefore tends to export to the EU, and towards the things it currently imports

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Egypt’s production of new car launched

Toyota Egypt, in partnership with Arab Organization for Industrialization (AOI), launched on Monday10/7/2017 a line for assembling car parts for the Toyota Fortuner 2017 at the Arab American Vehicles Co. Toyota Egypt’s investments in the project hit $8.5 million. Attending the contract inking was minister of investment and international cooperation Sahar Nasr, who stated that the Toyota Fortuner investment was a result of the government’s economic programme. The deal asserts that the investment atmosphere in Egypt is improving, Nasr said.

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Kuwait, America and Britain call for a quick containment of the crisis with Qatar through dialogue

Kuwait, the United States and Britain on Monday expressed “deep concern” about the continuing crisis between Saudi Arabia, the United Arab Emirates, Bahrain and Egypt with Qatar and called for their rapid containment through dialogue. This came after a meeting between Kuwaiti Foreign Minister Sheikh Sabah al-Hamad al-Sabah and his American counterpart Rex Tillerson and British national security adviser Mark Sidwell on Monday evening in Kuwait. The three countries called on “all sides to quickly contain the current crisis in

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Governor of Central Bank: Qatar reserves $ 340 billion

Governor of Central Bank: Qatar reserves $ 340 billion and can withstand the sanctions Qatar has a $ 340 billion reserve to withstand the isolation imposed by its Arab neighbors in the Gulf, Qatar’s central bank governor Sheikh Abdullah bin Saud al-Thani said on Tuesday. We have sufficient liquidity to cope with any kind of trauma, “Sheikh Abdullah told CNN television in an interview posted on his Web site early on Monday. He added that the Qatar Central Bank has

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Annual inflation in Egypt’s cities is back in June.

Annual inflation in Egypt’s cities rebounded in June, rising to 29.8 percent from a decline for the first time since last year, data from the Central Agency for Public Mobilization and Statistics (CAPMAS) showed on Monday. Six months in May to 29.7 percent. But the pace of consumer price inflation in cities fell on a monthly basis to 0.8 percent in June from 1.7 percent in May, the same level as April, which fell from 2 percent in March. In

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Precious metals plunged Friday

Precious metals prices plunged Friday as all signs point to interest rate hikes in the U.S., Canada and the U.K. Silver plummeted 10% in a flash crash overnight, but quickly corrected for a daily loss of 3.3% to $15.46 an ounce. August gold was down $13.60, or 1.1%, to end at $1,209.70/oz for the session, the lowest since mid-March. Gold was down 2.6% for the week. In economic news, the U.S. created 222,000 new jobs in June. Economists predicted a

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Dollar Rising On Strong Employment Data, Last week

The dollar is gaining ground against all of its major rivals Friday afternoon. The currency has climbed following the release of the stronger than expected U.S. jobs report for June. Employment in the U.S. increased by much more than expected in the month of June, according to a closely watched report released by the Labor Department on Friday. The report said non-farm payroll employment jumped by 222,000 jobs in June following an upwardly revised increase of 152,000 jobs in May.

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Oil Tumbles To End Another Rough Week

Crude oil futures tumbled Friday, extending weekly losses amid lingering concerns about the global supply glut. OPEC is having difficulty getting full compliance on its supply quotas and North American production has been rampant in the first half of the year. If OPEC doesn’t balance the market, the oil price will have to force it somewhere else, most likely in U.S. shale. For a chance of a balanced market in 2018, the U.S. rig count can no longer grow and

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Treasuries Extend Downward Trend On Upbeat Jobs Data

Extending the downward trend seen over the past several sessions, treasuries showed a moderate move to the downside on Friday. Bond prices moved lower early in the session and remained in negative territory throughout the day. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, rose by 2.3 basis points to 2.393 percent. With the continued increase on the day, the ten-year yield climbed to its highest closing level in almost two months.

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The Canadian dollar declined against its most major rivals in the Asian session

The Canadian dollar declined against its most major rivals in the Asian session on Friday, with rising global bond yields amid indications of a hawkish shift by the European Central Bank sapping investor appetite for riskier assets. The minutes from the European Central Bank’s June meeting showed that policymakers considered dropping their pledge to expand or extend the bond-buying program. This came on the heels of a speech by the ECB chief Mario Draghi last week, when he sounded optimistic

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Egypt’s central bank hikes key interest rates by 200 basis points

Faced with an eroding currency and accelerating inflation, Egypt’s central bank raised its key interest rates by 200 basis points for the second policy meeting in a row late on Thursday, the bank said in a statement. The central bank’s Monetary Policy Committee raised the overnight deposit rate to 18.75 percent from 16.75 percent and its overnight lending rate to 19.75 from 17.75 percent after also hiking them by 200 points each at the last policy-setting meeting in May. “The

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The Feds are less confident on the path for policy

Following the 13-14 June FOMC meeting, the USD rose and US yields recovered, because the Fed pressed ahead with its third quarterly rate hike in a row, and set out a plan for unwinding its asset holdings. Chair Yellen indicated that the asset unwind was expected this year and could commence relatively soon. And she downplayed the sharp recent fall in US inflation as related to special factors that were likely to be temporary. The minutes released Wednesday indicate that

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Saudi Arabia tightens its grip on Japan, its biggest Asian oil market

Saudi Arabia has boosted its market share in Japan, the world’s top oil exporter’s biggest Asian market, by selling more light crude to the country as a way to offset revenue lost implementing OPEC’s production cuts. Middle East crude sellers consider Japan, the world’s fourth-largest oil importer, a premium market since its refiners will pay more to secure supply than other Asian buyers. Saudi Arabia raises revenue by boosting sales of more expensive light crude since it cut its supply

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Qatar signals LNG price war for market share in Asia

Qatar’s plan to boost liquefied natural gas (LNG) output by 30 percent is the opening shot in a price war for customers in Asia pitting the Gulf state against competitors from the United States, Russia and Australia. Qatar, facing regional isolation in a diplomatic dispute with its Gulf neighbors, took energy markets by surprise on Tuesday when it said it would raise its LNG production to 100 million tonnes per year – equivalent to a third of current global supplies

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Australian Dollar Rises On Strong Trade Data

The Australian dollar strengthened against other major currencies in the Asian session on Thursday, after data showed that Australia’s trade balance rose more than expected in May. Data from the Australian Bureau of Statistics showed that Australia posted a seasonally adjusted merchandise trade surplus of A$2.471 billion in May. That exceeded forecasts for a surplus of A$1.10 billion following the downwardly revised A$90 million surplus in April. Exports were up 9.0 percent on month to A$32.781 billion, while imports added

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Gold steady as US policymakers split on rate hike outlook

Gold held steady on Thursday, after hitting an eight-week low in the previous session, as the Federal Reserve minutes released on Wednesday showed the central bank was split on how inflation might affect the future pace of interest rate hikes. Spot gold was nearly flat at $1,224.70 per ounce at 0421 GMT. It touched $1,217.14 in the previous session, its lowest since May 10. U.S. gold futures for August delivery gained 0.4 percent to $1,226.40 per ounce. “The FOMC meeting

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Euro Retreats After Eurozone PMI Data

The euro erased its early gains against its major rivals in early European deals on Wednesday, even as Eurozone business activity expanded more than initially estimated in June. Final data from IHS Markit showed that the composite output index fell to a four-month low of 56.3 in June from 56.8 in May, but above the flash estimate of 55.7. The services Purchasing Managers’ Index dropped less-than-estimated to 55.4 in June from 56.3 in May. The flash reading was 54.7. Germany’s

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Egypt, Saudi Arabia, UAE and Bahrain: We have received Qatar’s response and will respond in due course

Egypt, Saudi Arabia, the United Arab Emirates and Bahrain, which boycotted Qatar accusing it of supporting terrorism, issued a joint statement saying they had received a Qatari response to their demands through Kuwait “and will be answered in due course.” “The four countries received the Qatari response through the State of Kuwait before the end of the additional deadline, which came at the request of His Highness Sheikh Sabah Al-Ahmad Al-Jaber Al-Sabah, Amir of the State of Kuwait,” said the

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Moody’s downgrades Qatar’s future outlook to negative

Moody’s Credit Rating Agency- reduce its outlook for Qatar from stable to negative and keep its credit rating unchanged at Aa3 Moody’s says the main reason for changing the outlook to negative is the financial risks resulting from the conflict between Qatar and a group of countries. Moody’s says the likelihood of a prolonged uncertainty until 2018 has increased and a quick solution to the conflict is unlikely in the next few months. Moody’s says long-term foreign currency bond ratings

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Romania Retail Sales Growth Strong & Spain’s Services Activity Growth At 22-Month High

Romania’s retail sales growth quickened in May to the highest level in nine months, after easing in the previous two months, figures from the National Institute of Statistics showed Wednesday. Retail sales, excluding automobile trade surged a seasonally and working-day-adjusted 12.3 percent year-over-year in May, well above the 6.7 percent gain in April. Sales have been rising since April 2015. Moreover, the latest rate of increase was the sharpest since August last year, when sales had grown 13.2 percent. Sales

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European Economics Preview: Eurozone Retail Sales, Final PMI Data

Retail sales and final Purchasing Managers’ survey results from euro area are due on Wednesday, headlining a light day for the European economic news. 3.00 am ET, Hungary’s retail sales data is due. Sales are forecast to climb 3.7 percent year-on-year in May, following a 1.7 percent rise in April. At 3.15 am ET, IHS Markit releases Spain’s services PMI data. The index is seen at 56.5 in June compared to 57.3 in May. At 3.30 am ET, Statistics Sweden

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Russia Services Growth Softens More Than Expected

Russia’s service sector growth eased at a faster-than-expected pace in June, though the rate of expansion remained strong, survey figures from IHS Markit showed Wednesday. The IHS Markit Russia Services Business Activity Index dropped to 55.5 in June from 56.3 in May. Economists had expected the index to fall to 56.0. However, any reading above 50 indicates expansion in the sector. Among components, solid growth in new business resulted higher employment in June. On the price front, both cost burdens

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U.S. Dollar, Yen Advance Amid Rising Risk Aversion

The U.S. dollar and Japanese yen climbed against their major counterparts in the Asian session on Tuesday amid rising risk aversion, with investors cautious after North Korea’s ballistic missile launch in Japanese waters, ignoring warning from international community to cut off its nuclear weapons program. The missile launch comes on the eve of Independence Day in the U.S. and also just days before a summit of the Group of 20 countries in Germany later this week. Japanese Prime Minister Shinzo

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Australian Dollar Retreats Against Majors

Australia’s central bank kept its interest rate unchanged at a record low for the tenth consecutive meeting, on Tuesday. The board of the Reserve Bank of Australia, governed by Philip Lowe, maintained the cash rate at 1.50 percent, as widely expected. The bank had reduced the rate by 25-basis points each in August and May last year. “Taking account of the available information, the Board judged that holding the stance of monetary policy unchanged at this meeting would be consistent

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Dollar Climbing On Stronger Than Expected Manufacturing Data

The dollar is gaining ground against all of its major rivals Monday afternoon. Trading activity has been somewhat subdued today, due to the shortened trading day for the equity markets and tomorrow’s Fourth of July holiday. However, investors have reacted positively to the release of the better than expected ISM manufacturing report this morning. Activity in the U.S. manufacturing sector grew at an accelerated rate in the month of June, the Institute for Supply Management revealed in a report on

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UK Manufacturing Growth Eases In June

The UK manufacturing sector expanded at the weakest pace in three months in June as increases in orders and production decelerated from May. The factory Purchasing Managers’ Index fell to 54.3 in June from revised 56.3 in May, survey results from IHS Markit and Chartered Institute of Procurement & Supply showed Monday. This was the lowest reading in three months. The score was forecast to fall slightly to 56.5 from May’s initially published value of 56.7. The average PMI level

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Euro Mixed After Eurozone PMI Data

The euro was trading mixed against its major opponents in early European deals on Monday, following the release of data showing strong growth in Eurozone factory activity to the fastest rate in over six years in June. Final data from IHS Markit showed that Eurozone June manufacturing activity exceeded the initial estimate, reflecting improved performances across major economies. The final manufacturing Purchasing Managers’ Index rose to 57.4 in June from 57.0 in May. The score was slightly above the flash

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WTI clocks fresh 2-week highs near $ 46.50

Oil peaked at two-week highs of $ 46.44, oil futures on NYMEX eased slightly and reverted to the familiar range near $ 46.20, where it has been wavering so far this Monday. The black gold clings to gains near multi-day highs, as the bulls continue to remain in control for the eight straight session, in the wake of Friday’s bullish drilling data, which showed that the US drilling activity for new oil production fell for the first time since January.

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Dollar rises but remains under pressure

The dollar fell to a nine-month low against a basket of other major currencies on Monday, but remained weak, amid speculation that many central banks are preparing to tighten monetary policy. The dollar index, which measures the strength of the greenback versus a basket of six other major currencies, rose 0.17% to 95.55 at 07.23 Eastern Time. On Friday, the index fell to a nine-month low of 95.22. In comments last week, the ECB, the Bank of England and the

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Saudi Arabia & allies give Qatar two more days to accept demands

Saudi Arabia and three allies accusing Qatar of supporting terrorism have agreed to a request by Kuwait to extend by 48 hours Sunday’s deadline for Doha to comply, according to a joint statement on Saudi state news agency SPA. Without stating whether Qatar had rejected the ultimatum as was widely expected, Kuwaiti state news agency KUNA said Kuwait’s Emir Sheikh Sabah Al-Ahmad Al-Jaber Al-Sabah had asked Saudi Arabia and the three other countries boycotting Qatar to grant it an extension.

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USD/JPY jumps back above 112.50

Having touched a session low of 112.10 level, the USD/JPY pair regained traction and has now jumped to fresh session tops near 112.80-85 region. The pair witnessed a bearish gap opening on Monday in wake of the Tokyo Metropolitan Assembly election, where the Japanese Prime Minister Abe’s Liberal Democratic Party suffered a major defeat. Early weakness, however, turned out to be short-lived and the pair quickly recovered back closer to 1-1/2 month highs touched last Thursday amid a modest pick-up

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Japan: LDP suffers historic loss in Tokyo election

Tokyo Governor Yuriko Koike’s Tokyo Citizens First Party and its allies handily won yesterday’s Tokyo Metropolitan assembly election, securing 79 of the government’s 127 seats. “The LDP saw its presence plunge to an all-time low of 23 seats. Citizens had become increasingly put off by the Abe administration and LDP leaders amid a wave of issues, including frictions over preparations for the Tokyo Olympics, the battle over relocation of Tokyo’s Tsukiji fish market, allegations of political intervention in the granting

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Japan and the EU on the verge of a free trade agreement

Japan and the European Union are nearing a broad-based free trade deal that could help curb the trade protectionism unleashed by US President Donald Trump’s policies. EU Trade Commissioner Cecilia Malmstrom expressed “great confidence” that a broad agreement could be reached at a July 6 summit with Japanese Prime Minister Shinzo Abe as the two sides cut tariffs on cars and agricultural goods. The conclusion of an agreement gives an important political victory to the Europeans and Europe and may

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Qatar central bank says guarantees exchange, trading of riyal

Qatar’s central bank said on Friday it will guarantee all exchange transactions for customers inside and outside Qatar without delay, adding that all banks and foreign exchange companies are committed to trading the riyal as usual. The statement came after media reports said some exchange companies have stopped buying the Qatari riyal, which the central bank called “baseless”. “Qatari riyal’s exchange rate is absolutely stable against the U.S. dollar, and its exchangeability inside and outside Qatar is guaranteed at any

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EGYPT; Minister of Housing: Implement and put 23,865 social housing units in the city of May 15

The Minister of Housing, Utilities and Urban Communities, Dr. Mustafa Madbouli, said that 3816 housing units (159 buildings) were completed in the social housing project in the city of May 15th. The contracts were handed over to the citizens and the actual delivery of the units started. The construction of 5040 units (210 buildings) is underway, and the construction of 4920 units (205 buildings) is underway. The total number of units that have been implemented and put into operation in

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The economic risks that Qatar may face after rejecting the demands

Qatar continues to face credit risks amid a deepening Gulf crisis and its rejection of conditions set by the boycott states of Saudi Arabia, Egypt, Bahrain and the United Arab Emirates. On the basis of this, the cost of insurance for Qatari debt has continued to rise since the Gulf crisis began, reaching 120 basis points after only 74 points, indicating that this is the highest level of the cost of debt insurance since February 2016. The contracts measure the

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Saudi GDP falls for the first time since the financial crisis

Saudi Arabia’s gross domestic product contracted on an annualized basis in the first quarter of this year for the first time since the global financial crisis, but the private sector gradually improved, official data showed on Friday. Inflation adjusted GDP fell 0.5 percent year-on-year in January-March, its first decline since 2009. Almost all of this was due to a 2.3 percent contraction in the oil sector as Saudi Arabia cut its crude output under a global inter-state agreement Produced to

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Crude Oil Surges Above $46, Gold Down 2.6% For June

Crude oil futures rallied Friday, extending strong recent gains as the U.S. oil rig count dropped for the first time in five months. Baker Hughes Friday reported that the number of active U.S. rigs drilling for oil declined by two to 756 rigs this week. The rig count had risen 23 weeks in a row. Meanwhile, Baker Hughes stockholders approved the company’s merger with GE Oil & Gas. August WTI oil jumped $1.11, or 2.5%, to settle at $46.04/bbl, the

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Treasuries Extend Downward Trend Following Upbeat Economic Data

Treasuries moved lower over the course of the trading session on Friday, extending the downward trend seen over the past few days. Bond prices saw modest weakness in morning trading before seeing further downside in the afternoon. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, climbed 3.5 basis points to 2.302 percent. The ten-year yield closed higher for the fourth straight session, reaching its highest closing level in well over a month.

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Crude oil prices firm, set for biggest weekly gain since mid-May

Crude oil futures on Friday were on track for their biggest weekly gain since mid-May, ending five weeks of losses with prices underpinned by a decline in U.S. output. U.S. crude futures have added 4.6 percent this week, while benchmark Brent has gained 4.2 percent. That marks the biggest rise for both markets since the week ending May 19. U.S. crude output dropped 100,000 barrels per day (bpd) to 9.3 million bpd last week, the steepest weekly fall since July

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USD/CAD keeps falling

The Canadian Dollar has erased its initial gains vs. its American neighbour today, with USD/CAD now hovering over the 1.3010 region. The broad-based bearish note around the pair stays unchanged so far this week, which is now extending the downside for the fourth consecutive session and approaching at the same time the psychological support at 1.3000 the figure. The ongoing moderate recovery in crude oil prices has lifted the West Texas Intermediate to the boundaries of the $45.00 mark per

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GBP/USD inching closer to 1.30 mark

The selling bias around the greenback remains unabated, with the GBP/USD pair surging to fresh monthly tops and now inching back closer to the key 1.30 psychological mark. Wednesday’s hawkish remarks by the BoE Governor Mark Carney, supporting case for removal of additional stimulus provided an additional boost to the pair’s recovery move from sub-1.2600 level touched last week. This coupled with a heavily offered tone surrounding the buck further collaborated to the pair’s strong rally over the past three

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Oil rises for 6th session

Crude oil futures rose for a sixth consecutive session on Thursday, as a decline in U.S. production underpinned the market that has been under pressure from a global supply glut. U.S. West Texas Intermediate (WTI) crude rose 7 cents, or 0.2 percent, to $44.81 per barrel by 0003 GMT, while the benchmark Brent futures gained 8 cents, or 0.2 percent, to $47.39 a barrel. WTI climbed to $44.90 a barrel, matching Wednesday’s peak price which was highest since June 19.

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July surprise coming from the RBA

With the Australian labour market showing signs of improvement, the RBA could join the chorus of hawkish central banks in next week’s post-meeting statement. “With a range of central banks having surprised markets in recent weeks with a shift to more hawkish rhetoric, might the RBA do the same in next week’s post meeting statement?” “Looking through the statement from the June meeting, it does appear clear that the only changes the Bank can make are in the more hawkish

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Dollar Index refreshes 8-month lows in Asia

Broad based US dollar weakness alongside risk-on sentiment remained the underlying theme that drove forex today in Asia. Most majors touched their multi-month tops, while the Yen held steady amid positive equities and steepening Treasury yield curve. Commodities’ prices rallied across the board, with copper prices leading the pack. Meanwhile, on the data front, the Australian job vacancies rose to the highest since 2010, and the NZ business confidence gauge hit fresh nine-month tops. The Japanese retail sales data from

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UK 10-year gilt yields jump to 1-1/2 month high

The UK 10-year gilt yields jumped to a 1-1/2 month high Wednesday as investors wait to watch the Bank of England (BoE) Governor Mark Carney’s speech, scheduled to be held later in the day. Also, the release of Q1 GDP by the end of this week is closely eyed by investors for detailed direction in the debt market. The yield on the benchmark 10-year gilts, jumped 5-1/2 basis points to 1.15 percent, the super-long 30-year bond yields surged 4 basis

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USD/CHF hitting fresh multi-month lows below the 0.9600

The greenback selling pressure remains unabated, with the USD/CHF pair hitting fresh multi-month lows below the 0.9600 handle before recovering few pips. Growing scepticism over the Trump administration’s ability to push through tax reforms, and pro-growth fiscal stimulus plans, continued weighing on the greenback through European session on Wednesday. In fact, the key US Dollar Index slumped to fresh yearly lows below the 96.00 handle and dragged the pair to its lowest level since the US Presidential election. Tuesday’s comments

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Eurozone bonds mixed ahead of benchmark German CPI, unemployment rate

The Eurozone periphery bonds remained mixed on Wednesday as investors are looking forward to the release of benchmark German consumer price inflation for the month of June, due on June 29. Also, the country’s unemployment rate for the month of June, scheduled for release on June 30 will provide further direction in the debt market. The benchmark German 10-year bond yields, which moves inversely to its price, jumped 2-1/2 basis points to 0.38 percent, the French 10-year bond yields, rose

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Fitch affirms Egypt at ‘B’; Outlook stable

Fitch Ratings has affirmed Egypt’s Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDRs) at ‘B’ with a Stable Outlook. The issue ratings on Egypt’s senior unsecured foreign- and local-currency bonds are also affirmed at ‘B’. The Country Ceiling and the Short-Term Foreign- and Local-Currency IDRs are all affirmed at ‘B’. KEY RATING DRIVERS Egypt’s ratings balance a large fiscal deficit, a high general government debt/GDP ratio, and recent volatile political history, with renewed progress in implementing an economic and fiscal

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Gold firm as US healthcare vote delay weighs on stocks, dollar

Gold prices firmed on Wednesday as the dollar struggled and shares weakened after a vote on U.S. healthcare reforms was postponed and European Central Bank President Mario Draghi hinted the ECB could trim its stimulus this year. Asian shares slumped on Wednesday after Wall Street was knocked hard as U.S. Senate Republican leaders delayed a vote on a healthcare overhaul on Tuesday until next month, adding to investor worries about President Donald Trump’s ability to deliver on his promises of

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Net foreign assets at Saudi Arabia’s central bank look set to fall sharply

Net foreign assets at Saudi Arabia’s central bank, a measure of its ability to support its currency, look set to fall sharply this year as oil prices slump and Riyadh expands its sovereign wealth fund to invest abroad. They shrank from a record high of $737 billion (578.36 billion pounds) in August 2014 to $529 billion at the end of 2016 as the government liquidated some assets to cover the huge budget deficit caused by the fall in oil prices.

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Crude oil prices extend bounce off 10-month lows

Oil prices were higher in European trade on Tuesday, extending their recovery from last week’s ten-month lows, but futures stayed volatile in the face of fresh supply worries amid indications that U.S. shale production will continue to rise. The U.S. West Texas Intermediate crude August contract was at $43.72 a barrel by 3:25AM ET, up 35 cents, or around 0.8%. It touched its lowest since August 11 at $42.05 on Wednesday last week. Elsewhere, Brent oil for September delivery on

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French vote boosts Macron reforms

the party of French president Emmanuel Macron and its ally Democratic Movement (MoDem), has swept to power in France’s elections after winning 49.1 per cent of the votes cast. This vote gives LREM a very comfortable majority in the National Assembly – the lower house of parliament – with 350 seats out of 577. With 302 seats LREM will not even require the support of the MoDem, being above the 289 seats required to have an absolute majority. The victory

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ECB stands ready to increase the Asset Purchase Programme

As Mario Draghi has explained that the ECB stands ready to increase the Asset Purchase Programme if the outlook becomes less favourable. “It seems. therefore, that the ECB now favours adjusting this programme if some tweaking is needed (Mario Draghi refers to an APP bias).” “A rise in interest rates is not on the cards any time soon, especially since the inflation forecasts were revised downwards (just 1.6% expected in 2019, when the ECB defines price stability at inflation rates

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Commodities Watch (Metals)

Metals form an important part of global commodities. Precious metals serve beyond their traditional usage and as a store of value or as a hedge against inflation. Industrial metals like Zinc are important gauges to determine the global economic activities. the performance of the various commodities, categorically classified, which are keys to understand the broader global economy. For example, copper is considered as a barometer of global economic activity or gold is considered as a safe haven. After being the

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AUD/USD surges through 0.76

The AUD/USD pair continued gaining traction for the third consecutive session and has now jumped to one-week highs near 0.7610 region. A mildly weaker US Dollar, led by subdued action around the US Treasury bond yields helped the pair to build last week’s sharp recovery move from the very important 200-day SMA. Moreover, Monday’s disappointing US durable goods orders data also gave investors reason to be cautious about buying the greenback and remained supportive of the pair’s up-move for the

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U.S. Treasuries remain flat

The U.S. Treasuries remained flat Friday as investors remain geared up to witness a host of speeches by the Federal Open Market Committee (FOMC) members by late today. Further, the country’s 5-year auction, due early next week will provide further direction to the bond market. The yield on the benchmark 10-year Treasury, hovered around 2.15 percent, the super-long 30-year bond yields also traded flat at 2.73 percent and the yield on short-term 2-year note remained almost steady at 1.35 percent

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