• MTS Economic News_20160314

    14 Mar 2016 | Economic News



 



The dollar was steady against a basket of currencies, with the dollar index .DXY at 96.216, holding above a one-month low of 95.938 touched on Friday.

Against the yen, the dollar edged down slightly to 113.82 JPY=, though it remained within its recent ranges.

The euro EUR= added 0.1 percent to $1.1159, well above last week's low of $1.0821 plumbed after the ECB's stimulus expansion.

The Japanese yen remained at the 113 handle against the greenback. The dollar/yen pair traded at 113.75 as of 8:13 a.m. HK/SIN time. Japanese exporters mostly traded up, with shares of Toyota adding 0.77 percent, Nissan gaining 1.64 percent and Honda higher by 1.17 percent.

Central banks are in focus this week, as the Bank of Japan starts its two-day monetary policy meeting on Monday and the U.S. Federal Reserve meets later this week.

The Bank of Japan's two-day policy meeting begins on Monday. Policymakers were set to discuss this week whether to exempt $90 billion in short-term funds from the BOJ's newly imposed negative interest rate, people familiar with the matter said, after the securities industry warned that investment money would be driven into bank deposits.

The BOJ is seen likely to stay on hold after adopting negative interest rates at its meeting in late January. The U.S. Federal Reserve and the Bank of England are also seen standing pat at their respective meetings later this week, in the wake of the ECB's move to expand its easing program.

U.S. import prices fell in February for an eighth straight month, weighed down by declining costs for petroleum and a range of other goods, but the pace of decline is slowing as the dollar's rally fades and oil prices stabilize.

The Labor Department said on Friday import prices slipped 0.3 percent last month after a 1.0 percent decrease in January. Import prices have decreased in 18 of the last 20months, reflecting a robust dollar and plunging oil prices.

Japan's core machinery orders jumped in January, inflated by large orders from the steel industry, but economists say excluding this factor orders were probably flat from the previous month.

The 15.0 percent monthly rise in core orders, a highly volatile data series regarded as a leading indicator of capital spending in the coming six to nine months, was more than economists' median estimate for a 3.0 percent month-on-month increase, Cabinet Office data showed on Monday.

Chinese data released on Saturday, meanwhile, showed continuing weakness in other key parts of the economy, but also contained a few bright signs.

Manufacturing output in January and February grew at its weakest pace since 2008, while retail sales rose at their slowest rate since May 2015.

But fixed-asset investment, a crucial driver of the economy, gained 10.2 percent in the first two months compared with the same period a year earlier.

Crude oil prices were lower on Monday, after marking sharp gains on Friday after the Paris-based International Energy Agency said the market may have hit bottom.

U.S. crude CLc1 slipped about 0.3 percent to $38.37 a barrel after rising 2 percent on Friday, when it hit a 2016 high and also logged its fourth straight gaining week.

Brent LCOc1 edged down about 0.1 percent to $40.34 a barrel after gaining nearly 1 percent in the previous and 4 percent for the week, its third weekly gain in a row.

Oil prices may have passed their lowest point as shrinking supplies outside Opec and disruptions inside the group erode the global surplus, the International Energy Agency (IEA) said.

Production outside the Organisation of Petroleum Exporting Countries will decline by 750,000 barrels a day this year, or 150,000 barrels a day more than estimated last month, the agency said. Markets are also being supported by output losses in Iraq and Nigeria, and as Iran restores production more slowly than planned following the end of international sanctions, it said.


Reference: Reuters, Bloomberg, CNBC

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