Economy

Dollar Gains for Second Day as Yellen Reinforces December Hike

Dollar Gains for Second Day as Yellen Reinforces December Hike”

"We're now seeing some embryonic prospects of a tax reform in the United States which is a much bigger issue for the markets than the Federal Reserve", said Ray Attrill, Sydney-based global head of forex strategy at National Australia Bank, as quoted by Reuters.

"Another risk is that our framework for understanding inflation dynamics could be misspecified in some fundamental way, perhaps because our econometric models overlook some factor that will restrain inflation in coming years despite solid labor market conditions".

About 20 minutes into trading, the Dow Jones Industrial Average stood at 22,357.82, up 0.3 percent. Apple gained 1.7%, halting a four-session skid.

"Yellen kind of confirmed that they intend to continue to raise interest rates", said Kathy Lien, managing director at BK Asset Management in NY.

Yellen said it was "imprudent to keep monetary policy on hold until inflation is back to 2 percent". Atlanta Fed chair Raphael Bostic talked up the prospect of a December rate hike, while there was some focus on his view that "I actually don't think that our policies are too easy in the sense of really facilitating some sort of asset bubble". Meanwhile, new-home sales tumbled last month, running at a seasonally adjusted annual pace of 560,000.

Should there be an actual conflict this is likely to affect the US Dollar, it could cause a strengthening of the as it's considered a "safe haven" currency.

As the USA dollar rises, gold futures will usually fall, as dollar-priced gold becomes more expensive for holders of other currencies.

Bullion prices ended lower at Comex on Tuesday, 26 September 2017.

Higher rates in the U.S. tend to affect fund flows to emerging markets - a point raised by Reserve Bank governor Lesetja Kganyago last week when he chose to keep local rates on hold. There has been a focus around the response of American football players towards the USA national anthem and more importantly the tensions between North Korea.

Spot gold inched 0.1 percent higher to $1,294.89 per ounce at 0425 GMT.

In the other precious metals, the spot silver price rose $0.048 to $16.835-16.88 per oz.

The U.S. Energy Information Administration will release stocks data later on Wednesday. President Donald Trump has not said whether he plans to re-appoint Yellen or overhaul the central bank's seven-member board of governors. Nymex WTI crude declined 46 cents, or 0.9%, to $51.76 a barrel. Prices on Monday surged 3.1%, with the $52.22 settlement the highest since mid-April. USA crude stocks were reduced by 761,000 barrels last week, the American Petroleum Institute announced on Tuesday. Market expect the EIA to report a fourth-straight weekly riseof 1.3 million barrels for crude inventories, while gasoline stockpiles are seen down by 100,000 barrels and distillates down 2.1 million barrels.



Like this

loading...
loading...

Latest


27 September 2017
Weight Loss Saves Obese Adults Nearly $30000
High BMI can also result in high medical costs for treating the complications and productivity losses, due to missed work days. Normal weight, overweight, and obese categories were determined by Body Mass Index standards.

27 September 2017
Airtel deploys 5G capable technology; promises faster data speeds
Massive MIMO creates 3D beams both on horizontal and vertical planes towards users located within its coverage footprint. Customers can enjoy these faster data speeds on their existing 4G mobile devices without any upgrades or plan change.

27 September 2017
Needham & Company LLC Reaffirms Buy Rating for Neurocrine Biosciences, Inc. (NASDAQ:NBIX)
BidaskClub raised Neurocrine Biosciences from a "sell" rating to a "hold" rating in a research note on Wednesday, June 21st. Citigroup Incorporated reported 0% in Neurocrine Biosciences, Inc. (NASDAQ:NBIX) in a report published on Thursday morning.

27 September 2017
Back With Atletico, Costa Says all's Well That Ends Well
He will be eligible for selection from January 2 when the Spanish transfer window opens and Atletico's ban ends. A Chelsea statement on Thursday had said they had agreed terms with the La Liga side for the transfer of Costa.

27 September 2017
BHP Billiton plc's (BLT) "Outperform" Rating Reaffirmed at Macquarie
ValuEngine lowered BHP Billiton PLC from a "strong-buy" rating to a " buy" rating in a report on Thursday, August 24th. Oppenheimer Asset Management Inc.'s holdings in BHP Billiton PLC were worth $849,000 as of its most recent SEC filing.

27 September 2017
Sonic notified of unusual credit card activity
Sonic Drive-In burger.WikiMedia CommonsMillions of Sonic customers may have had their credit card information stolen. Multiple financial institutions noticed a string of fraudulent transactions with cards all previously used at Sonic.

27 September 2017
London mayor: Trump 'inadvertently' adopting rhetoric of Islamic State
London mayor further said that he was a "reluctant participant" in the continuing hostility between himself and the USA president. Theresa May invited Trump to make a state visit when she visited the White House days after his inauguration in January.

27 September 2017
Fifth Third Bancorp (NASDAQ:FITB) Shares Sold by Axa
The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink . TheStreet upgraded Fifth Third Bancorp from a "c+" rating to a "b" rating in a research report on Friday, June 23rd.

27 September 2017
Uganda ejects lawmakers opposed to president's long rule
Critics say the action underscores a crackdown in the East African country against anyone questioning a planned constitutional amendment.

27 September 2017
Tourism can help eradicating poverty: President
In the year 2016, tourism's contribution to the GDP was 9.6 per cent and 9.3 per cent to total employment in India, he said. The function was presided over by the Minister of State (Independent Charge) for Tourism Shri Alphons Kannanthanam.