Market Review - 13/06/2019 23:35GMT
Dollar ends mixed in lackluster Thursday's trading
The greenback ended mixed in directionless Thursday's session as investors remained cautious ahead of next week's Federal Reserve meeting, market is pondering whether Chairman J. Powell will hint the possibility of interest rate cut later this year as well as continued U.S.-China trade concern together with tensions in the Middle East after U.S. blamed Iran for tanker attacks in Gulf of Oman.
On the data front, Reuters reported the number of Americans filing applications for unemployment benefits unexpectedly rose last week, which could add to concerns that the labor market was losing steam after job growth slowed sharply in May.
Initial claims for state unemployment benefits rose 3,000 to a seasonally adjusted 222,000 for the week ended June 8, the Labor Department said on Thursday. Data for the prior week was revised to show 1,000 more applications received than previously reported.
Economists polled by Reuters had forecast claims decreasing to 216,000 in the latest week. The Labor Department said no states were estimated. While layoffs remain relatively low, the third straight weekly increase in claims suggests some softening in labor market conditions.
Versus the Japanese yen, although dollar initially fell from 108.54 at Asian open to session lows at 108.17, price ratcheted higher to 108.53 in New York morning before retreating due to safe-haven yen buying on renewed M. East tension.
Although the single currency recovered to 1.1303 at European open, renewed selling emerged and knocked price down to session lows at 1.1269 due to renewed Italy's debt concern together with usd's strength in New York morning, price later moved narrowly in subdued New York afternoon.
Reuters reported the European Commission is ready to recommend opening EU disciplinary steps against Italy over the country's rising debt if Rome does not make any new commitments to reach fiscal goals it promised last December, European Economics Commissioner said.
Pierre Moscovici said the Commission needed new data and a clear path that would show Italy was complying with fiscal rules in 2019 and 2020.
The British pound went through a roller-coaster ride. Although cable fell from 1.2700 in Asian morning to session lows at 1.2662 in European morning, however, renewed buying emerged and pushed price to 1.2708 at New York open after U.K. PM candidate Boris Johnson won the most votes in first round of the contest before retreating in tandem with euro in New York afternoon.
Reuters reported Boris Johnson, who has pledged to deliver Brexit on Oct. 31, edged closer to power on Thursday when he won by far the most support from Conservative Party lawmakers in the first round of the contest to replace Prime Minister Theresa May.
Johnson got 114 votes, with Foreign Secretary Jeremy Hunt in second place on 43 votes and environment minister Michael Gove third with 37 votes.
Three candidates -- Andrea Leadsom, Esther McVey and Mark Harper -- were eliminated after they failed to receive the required minimum of 17 votes.
In other news, Reuters reported China's commerce ministry said on Thursday Beijing will not yield to any "maximum pressure" from Washington, and any attempt by the United States to force China into accepting a trade deal will fail.
China will not make concessions on matters of principle, ministry spokesman Gao Feng told reporters at a regular briefing.
Trade talks between the world's two largest economies fell apart in May. U.S. officials said China had watered down commitments it made on issues such as stopping intellectual property theft.
Asked about U.S. President Donald Trump's accusation that China reneged on its promises, Gao said: "Nothing is agreed until everything is agreed."
Data to be released on Friday :
New Zealand manufacturing PMI, China industrial output, retail sales, Japan industrial output, capacity utilization, Germany wholesale price index, France CPI, Italy industrial orders, industrial sales, CPI, and U.S. retail sales, industrial production, capacity utilization, manufacturing output, business inventories, University of Michigan sentiment.
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