• MTS Economic News_20180104

    4 Jan 2018 | Economic News


• The dollar edged up on Thursday after upbeat U.S. data and supportive minutes from the Federal Reserve’s latest policy meeting helped it shake off recent weakness.

The dollar index .DXY, measuring it against a basket of six major currencies, extended the previous day’s bounce to stand 0.02 percent higher at92.183 . It had declined to 91.751 on Tuesday, its lowest since Sept. 20.

Fed policymakers acknowledged the U.S. labor market’s solid gains and the expansion in economic activity, even as they affirmed worries about persistently low inflation.

That suggested the central bank will continue to pursue a gradual approach in raising rates but could hasten the pace if inflation accelerates.

The euro was little changed at $1.2016 EUR= after losing roughly 0.4 percent overnight. The common currency had surged to a three-month high of$1.2081 on Tuesday against a broadly weaker dollar.

The U.S. currency was 0.15 percent higher at 112.655 yen JPY=. It touched a 2-1/2-week low of 112.055 on Tuesday after declining steadily from a high above 113.750, scaled in December.

• U.S. President Donald Trump’s administration has been informing members of Congress that it will announce as soon as Wednesday plans to cut off “security assistance” to Pakistan, congressional aides said on Wednesday, a day after the White House warned Islamabad it would have to do more to maintain U.S. aid.

The calls to Capitol Hill came a day after Washington accused Pakistan of playing a “double game” on fighting terrorism and warned Islamabad it would have to do more if it wanted to maintain U.S. aid.

• Japanese Prime Minister Shinzo Abe said on Thursday North Korea was engaging in continued provocations that were “absolutely unacceptable” and said he would work with the international community to counter its nuclear and missiles development.

• Japanese manufacturing activity expanded at the fastest pace in almost four years in December as new orders accelerated, a revised survey showed on Thursday, in a sign that steady economic growth will continue into the new year.

The Markit/Nikkei Japan Manufacturing Final Purchasing Managers Index (PMI) was a seasonally adjusted 54.0 in December, slightly below the preliminary reading of 54.2 but still above a final reading of 53.6 in November.

• Bank of Japan Governor Haruhiko Kuroda said on Thursday the central bank would “patiently” maintain its ultra-easy monetary policy to beat deflation.

• Oil prices on Thursday hit their highest in more than two and a half years, touching levels not seen since before a slump in commodity markets in 2014/15, boosted by tensions in key producer Iran and by ongoing OPEC-led output cuts.

U.S. West Texas Intermediate (WTI) crude futures CLc1 were at $62.16 a barrel at 0752 GMT, up 53 cents, or 0.9 percent, from their last close. They touched $62.21 shortly before, their highest level since May 2015.

Brent crude futures LCOc1 - the international benchmark for oil prices - were at $68.23 a barrel, up 39 cents, or 0.9 percent, after revisiting a May2015 high of $68.27 shortly before.


Reference: Reuters, CNBC

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