• MTS Economic News_20170801

    1 Aug 2017 | Economic News


• The dollar skidded to a six-week low versus the yen on Tuesday, its outlook clouded by U.S. political turmoil and doubts over whether there will be another Federal Reserve rate hike this year.

The dollar slipped to a low of 110.005 yen at one point, its lowest level since June 15. The greenback was last trading at 110.20 yen, down about 0.1 percent on the day.

• While the dollar could bounce back to levels around 111.50 yen if forthcoming U.S. economic data is strong, a rise to levels beyond 112 yen seems unlikely in the near term, said Teppei Ino, an analyst for Bank of Tokyo-Mitsubishi UFJ in Singapore.

The index's trough of 92.784 on Monday was its lowest since early May 2016. It last stood at 92.877.

July's drop marked its fifth consecutive monthly decline, the longest such stretch since the December 2010 through April 2011.

The euro eased 0.1 percent to $1.1830, slipping back slightly after setting a 2-1/2 year high of $1.1846 in early Asian trade on Tuesday.

• Traders might trim their bullish bets on the euro for now and look for chances to buy the euro on dips, as they look to U.S. economic data this week for fresh clues on the dollar's overall direction, said Stephen Innes, head of trading in Asia-Pacific for OANDA in Singapore.

• Japan's manufacturing activity grew in July at the slowest pace in eight months as export demand weakened, a private survey showed on Tuesday.

The Markit/Nikkei Japan Final Manufacturing Purchasing Managers Index (PMI) dipped to 52.1 in July on a seasonally adjusted basis, slightly weaker than a preliminary reading of 52.2 and a final 52.4 in the previous month.

But despite the somewhat softer reading, the headline PMI index remained above the 50 threshold that separates expansion from contraction for the 11th consecutive month.

• Growth in China's manufacturing quickened in July, a private survey showed on Tuesday, as output and new orders rose at the fastest pace since February on strong export sales.

But even as firms boosted purchasing in anticipation of more business, employment levels at factories fell at the fastest pace in 10 months and a reading on business outlook was the lowest since last August - a sign that economic momentum may start to ebb in the months ahead.

The Caixin/Markit Manufacturing Purchasing Managers' Index (PMI) rose to 51.1 in July, above the 50-point mark that separates growth from contraction, and well ahead of the 50.4 in June which was also the median figure forecast by 21 analysts in a Reuters survey.

• China hit back on Monday after U.S. President Donald Trump tweeted he was "very disappointed" in China following North Korea's latest missile test, saying the problem did not arise in China and that all sides need to work for a solution.

China has become increasingly frustrated with American and Japanese criticism that it should do more to rein in Pyongyang. China is North Korea's closest ally, but Beijing, too, is angry with its continued nuclear and missile tests.

• A defiant Venezuelan President Nicolas Maduro mocked the sanctions Washington slapped on him Monday after Sunday's election of a new legislative superbody that prompted the White House to call him a dictator for "seizing absolute power."

"I don't take orders from the empire," he shouted to a televised gathering of supporters. "Keep up your sanctions, Donald Trump!"

• Oil rose on Tuesday, supported by strong U.S. fuel demand, but ongoing high supplies from producer club OPEC kept prices in check.

U.S. West Texas Intermediate (WTI) crude futures were at $50.32 per barrel at 0712 GMT, up 15 cents, or 0.3 percent, from their last close. Tuesday marked the first time U.S. crude has opened above $50 per barrel since May 25.

Brent crude futures, the international benchmark for oil prices, were at $52.85 per barrel, up 13 cents, or 0.25 percent.

• Oil output by the Organization of the Petroleum Exporting Countries (OPEC) has risen this month by 90,000 barrels per day (bpd) to a 2017-high of 33million bpd, a Reuters survey found, led by a further recovery in supply from Libya, one of the countries exempt from a production-cutting deal.

Reference: Reuters, CNBC


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