U.S. dollar ticks up in step with Treasury yields
By Kate Duguid NEW YORK (Reuters) - The U.S. dollar rose on Wednesday alongside Treasury yields, boosted for the second straight day by strong economic data earlier this week.
By Kate Duguid
NEW YORK (Reuters) - The U.S. dollar rose on Wednesday alongside Treasury yields, boosted for the second straight day by strong economic data earlier this week.
The dollar index <.DXY> was 0.18% higher to 97.400, with the 10-year Treasury note yield
"(Foreign exchange) trade was very quiet in N.Y. on Wednesday, though the (dollar index) managed a one-week high of 97.47 early in the session," wrote Ronald Simpson, managing director, global currency analysis at Action Economics. "There was no data to drive the market, though firmer Treasury yields provided some support to the USD."
U.S. industrial production rebounded in November, mainly because a strike by General Motors Co
Expectations the Federal Reserve will cut the federal funds rate from the current 150-175 basis point level are 2.2% for the central bank's January meeting, 4.3% for March and 11% for April, according to CME Group's FedWatch tool. The same tool shows a 52.9% chance that rates will remain at current levels through December 2020.
"Bottom line: the U.S. economy remains on solid footing even as the rest of the world struggles," wrote analysts at Brown Brothers Harriman.
The dollar rose 0.3% against the euro
U.S. government bonds and the dollar both shrugged off the likely impeachment of President Donald Trump. The U.S. House of Representatives is set to vote for impeachment on Wednesday on charges that Trump abused his office and obstructed a congressional probe. Although Trump would only be the third president in U.S. history to be impeached, U.S. markets brushed it off because the Senate is unlikely to convict him.
The normally sleepy Hong Kong dollar
(Reporting by Kate Duguid and Olga Cotaga; Editing by David Gregorio and Richard Chang)
This story has not been edited by Firstpost staff and is generated by auto-feed.
By Robin Emmott and John Irish | BRUSSELS/PARIS BRUSSELS/PARIS France and Germany will agree to a U.S. plan for NATO to take a bigger role in the fight against Islamic militants at a meeting with President Donald Trump on Thursday, but insist the move is purely symbolic, four senior European diplomats said.The decision to allow the North Atlantic Treaty Organization to join the coalition against Islamic State in Syria and Iraq follows weeks of pressure on the two allies, who are wary of NATO confronting Russia in Syria and of alienating Arab countries who see NATO as pushing a pro-Western agenda."NATO as an institution will join the coalition," said one senior diplomat involved in the discussions. "The question is whether this just a symbolic gesture to the United States
BEIJING Chinese President Xi Jinping on Wednesday called for greater efforts to make the country's navy a world class one, strong in operations on, below and above the surface, as it steps up its ability to project power far from its shores.China's navy has taken an increasingly prominent role in recent months, with a rising star admiral taking command, its first aircraft carrier sailing around self-ruled Taiwan and a new aircraft carrier launched last month.With President Donald Trump promising a US shipbuilding spree and unnerving Beijing with his unpredictable approach on hot button issues including Taiwan and the South and East China Seas, China is pushing to narrow the gap with the U.S. Navy.Inspecting navy headquarters, Xi said the navy should "aim for the top ranks in the world", the Defence Ministry said in a statement about his visit."Building a strong and modern navy is an important mark of a top ranking global military," the ministry paraphrased Xi as saying.