24-hour view: “While USD did not advance further to 6.9250 as expected yesterday (high: 6.9180), the upside bias remains intact. However, as the momentum has moderated, the path to 6.9250 is likely to be gradual rather than explosive. Support is at 6.9020 followed by 6.8840 and only a break of the latter would indicate that USD is transiting into a sideways pattern.”
Next 1-3 weeks: “We highlighted yesterday (21 Jan, spot at 6.8700) that the decline in USD ‘is in oversold territory’ but held the view that it ‘could dip below 6.8400 but the July 2019 low near 6.8170 is likely out of reach’. The manner by which USD subsequently surged to a high of 6.9126 came as a surprise. While our ‘strong resistance’ at 6.9200 is still intact, the outsized gain is enough to indicate that USD has found a short-term bottom at 6.8460 on Monday (20 Jan). The current USD strength is viewed as the early stages of a correction phase. From here, the recovery could extend to 6.9650. At this...
Ethereum futures are set to hit the markets next year and traders are wondering if they could have the same initial effect on ETH/USD that Bitcoin futures had on BTC/USD. The digital currency is currently the second-largest cryptocurrency with a market cap of $14,285,029,568 and is third on the volume rakings ($9,865,011,248 ave) behind Tether and Bitcoin. The one issue I have with cryptocurrency derivatives is the fact it could take volume away from the underlying asset. Some say this is a good thing as it takes away some of the so-called "not so serious" traders away from the markets.
The NZD/USD pair is struggling to find direction on Thursday and trading in a very tight 15-pip range below the 0.6600 handle with investors staying on the sidelines ahead of the key inflation data from New Zealand. As of writing, the pair was up 0.05% on the day at 0.6594.
The lack of significant macroeconomic data releases from China and New Zealand caused the pair to stay stuck in its narrow channel. Although the positively-correlated AUD/USD pair gained nearly 40 pips during the Asian trading hours following the upbeat labour market data from Australia, the NZD/USD failed to react.
On the other hand, the greenback's uninspiring performance since the start of the week allows the pair to extend its sideways action. The US Dollar Index, which tracks the USD's value against a basket of six major currencies, seems to have gone into a consolidation phase after meeting resistance near 97.70 on Monday.
The biggest concern is a sharp drop in travel demand if the virus becomes a pandemic.
During the height of the SARS outbreak in April 2003, passenger demand in Asia plunged 45%, according to the International Air Transport Association (IATA).
Cathay cut nearly 40% of its flights and reported a financial loss, as did Singapore Airlines Ltd, Japan Airlines Co Ltd and ANA Holdings Inc.
The industry is now more reliant on Chinese travelers.
For example, in Australia, Chinese travelers account for more than 15% of international arrivals, up from just 4% in 2003, according to Moody’s ratings service.
Those travelers, who arrive mostly via mainland carriers, often take domestic flights once they arrive in Australia, pointing to the potential for knock on effects for the likes of local airline Qantas Airways Ltd if there is a fall in travel demand.
Since 2003, the number of annual air passengers has more than doubled, with China growing to...
- GBP/USD has surged after the second upbeat figure cast doubts about an imminent rate cut. Parliament approval of Brexit, the coronavirus outbreak and further BOE speculation is eyed. Thursday's four-hour chart is pointing to oversold conditions after the wedge breakout.
LONDON (Reuters) - World shares fell on Thursday, led by the biggest decline in Chinese stocks in more than eight months, as concern mounted about the spread of a deadly virus in China.
In a statement, prosecutor Tom Lemon said: “This is an unprecedented fine in Canada. It is 26 times greater than the highest federal environmental fine ever imposed.”
Volkswagen also issued a statement, saying that the fine would be used to support environmental projects on both a regional and national scale.
It added: “The resolution acknowledges the extensive measures by Volkswagen to make things right in Canada and strengthen its global compliance policies.”
Prosecutors had proposed a fine in order to draw a line under the violations.
Volkswagen had previously said it would buy back 125,000 of the vehicles in question for CA$2.4bn as compensation for duped owners.
In 2015 the German company was plunged into disarray after it admitted to using illegal software to deceive US pollution tests.
Read more: British drivers launch Volkswagen ‘Dieselgate’ action in High Court
US Treasury secretary Steve Mnuchin has said he expects to wrap up a trade deal with the UK within the year, a day after he slammed a proposed British digital services tax as “discriminatory”.
The US’s commerce secretary Wilbur Ross, who was speaking at the same event at the World Economic Forum in Davos, Switzerland, said there were “far fewer issues between UK and US than between either of us and EU”, the BBC reported.
Read more: Donald Trump threatens high EU car tariffs if deal is not reached
The remarks were a change from the combative tone struck yesterday, when Mnuchin told UK chancellor Sajid Javid at a Davos event that he was “disappointed” that the US was not above the EU on Britain’s list of trade deals.
Hotel Chocolat has reported double digit revenue growth in the second half of last year.
In a trading update this morning Hotel Chocolat said revenue grew 11 per cent in the 13-week period to 29 December, while in the 26 weeks to the same date it was up 14 per cent.
Read more: Hotel Chocolat hungry for global expansion as profit rises
The chocolatier said trading in the run-up to Christmas continued to be in line with expectations but flagged “inefficiencies in the supply chain” which increased costs “moderately”. The company said it would address this in 2020.
Mnuchin’s comments expose the huge gulf that still exists between climate activists and the White House. Pressed on the climate emergency, Mnuchin insisted that environmental issues are “clearly complicated”.
He said: “When I was allowed to drive I had a Tesla. I drove in California. I liked it.
“But nobody focuses on how that electricity is made and what happens to the storage and the environmental issues on all these batteries.”
He also claimed that the US was showing leadership in tackling emissions – but through its private sector rather than government. President Trump believes in clean air and water, and a clean environment, Mnuchin insisted but also believes that the real environmental issue centres on China and India
People who call for divestment should remember there are “significant economic issues, issues with jobs”, he continued. “Many economies are transitioning to more efficient and cleaner energy. That doesn’t have to be all...
Copper futures continue its way down in the second half of the week on broad-based concerns over global growth, particularly exacerbated by the outbreak of the Wuhan coronavirus in China some days ago. However, the recent pullback was on the back of shrinking volume and open interest, allowing for a rebound in the short-term horizon.
FRANKFURT — Climate change has already been blamed for deadly bush fires in Australia, dying coral reefs, rising sea levels and ever more cataclysmic storms. Could it also cause the next financial crisis?
A report issued this week by an umbrella organization for the world’s central banks argued that the answer is yes, while warning that central bankers lack tools to deal with what it says could be one of the biggest economic dislocations of all time.
The book-length report, published by the Bank for International Settlements in Basel, Switzerland, signals what could be the overriding theme for central banks in the decade to come.
“Climate change poses unprecedented challenges to human societies, and our community of central banks and supervisors cannot consider itself immune to the risks ahead of us,” François Villeroy de Galhau, governor of the Banque de France, said in the report.
MILAN (Reuters) - Passengers on a China Southern Airlines flight from the Chinese city of Wuhan arriving at Rome’s Fiumicino airport early on Thursday were checked for signs of coronavirus, an airport spokesman said.
The check on the 202 passengers and crew was the first since Italian health authorities ordered special control measures to prevent transmission of the virus this week. There was no information on any possible suspected cases.
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