CURRENCIES: Dollar Extends Climb To Kick Off Week, With Partial Government Shutdown Looming
11 Februar 2019 - 2:15PM
Dow Jones News
By Anneken Tappe, MarketWatch
The White House isn't ruling out another partial government
shutdown if an agreement on U.S.-Mexico border-security isn't
reached
The U.S. dollar looked to add to its winning streak,
strengthening against rivals across the board, despite the chance
of the renewed partial government shutdown looming in the
background.
The ICE U.S. Dollar Index rose 0.2% at 96.829, extending strong
updraft last week that helped the gauge to mark its best weekly
percentage jump, up 1.1%, since August.
Don't miss:Why the dollar is back on the rise despite the Fed's
dovish turn
(http://www.marketwatch.com/story/why-the-dollar-is-back-on-the-rise-despite-the-feds-dovish-turn-2019-02-08)
Meanwhile, another partial shutdown of the U.S. government is in
the cards, after talks between Democrats and Republicans broke down
over the weekend
(http://www.marketwatch.com/story/border-security-negotiations-stall-as-another-shutdown-deadline-looms-2019-02-10).
Among major currency pairs, the greenback was strongest against
the Japanese yen , climbing 0.4% to Yen110.17. Japanese markets are
closed for the National Foundation Day holiday on Monday.
The dollar's main rival, the euro was slightly weaker at
$1.1307, down from $1.1326 late Friday.
The British pound was also notably weaker against its U.S.
rival, after many economic data further highlighted weakness in the
U.K. economy. Gross domestic product for the final quarter of 2018
fell to 1.3% year-over-year, undercutting expectations.
Quarter-on-quarter, GDP growth slowed to 0.2%, also lower than
expected.
Also check out:How the European economy is raising fresh global
growth fears
(http://www.marketwatch.com/story/how-the-european-economy-is-raising-fresh-global-growth-fears-2019-02-07)
Business investments were down in the fourth quarter, and
construction output and industrial production fell in December. The
only data points that outperformed expectations were preliminary
fourth-quarter reads of imports and exports.
The pound fell to $1.2900, down from $1.2942 late Friday in New
York.
On the Brexit front, Prime Minister Theresa May is expected to
ask Parliament for more time to hammer out her alternative deal.
"This would tentatively set up 'the meaningful vote' for the end of
the month," said Marc Chandler, chief market strategist at
Bannockburn Global Forex.
Elsewhere, Chinese markets are back from the Lunar New Year
holiday and the yuan was weaker versus the buck, along with most
emerging-markets currencies.
In Beijing, the dollar bought 6.7892 yuan , up 0.7%, while in
the offshore market, the buck fetched 6.7986 yuan , up 0.2%
Trade talks between the U.S. and China are set to resume in
Beijing this week.
"The markets still seem inclined to expect an agreement, even if
its not the final word in the rivalry," wrote Chandler. "Still, it
is hard to see a breakthrough unless and until the two presidents
meet."
President Donald Trump last week said he wasn't planning to meet
Chinese President Xi Jinping this month, despite having set a
deadline of March 1 to reach a deal.
(END) Dow Jones Newswires
February 11, 2019 08:00 ET (13:00 GMT)
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