• MTS Economic News_20170807

    7 Aug 2017 | Economic News


• The dollar held the bulk of its gains on Monday after an upbeat U.S. jobs report lifted it off 15-month lows, with data lined up this week seen as key to whether the greenback's rebound could be sustained in the longer term.

The dollar index against a basket of six major currencies was a shade lower at 93.330 .DXY after climbing 0.75 percent on Friday. The rally pulled it away from92.548, its lowest level since May 2016 marked on Wednesday.

The dollar, which briefly sank below 110.00 yen to a seven-week low last week, was steady at 110.695 yen JPY= after going as high as 111.050 on Friday.

The euro inched up 0.2 percent to $1.1798 EUR= after losing 0.8 percent on Friday, to put some distance between a 2-1/2-year high of $1.1910 scaled earlier last week.

"This is going to be a crucial week for the dollar. The limited rise by the 10-year Treasury yield despite the strong payrolls shows that concerns towards slowing U.S. inflation still linger," said Junichi Ishikawa, senior FX strategist at IG Securities in Tokyo.

• President Donald Trump arrived in office having promised a bold $1 trillion infrastructure investment plan over 10 years for roads, bridges, airports and transit systems crumbling by the day across the United States.

But nearly seven months later the administration has produced few details on the future of federal infrastructure funding, one reason why state and municipal governments have issued fewer bonds to improve roads, water systems and other projects so far in 2017.

• Thai officials voiced hope ahead of a visit by U.S. Secretary of State Rex Tillerson of escaping U.S. pressure over the size of their trade surplus with the United States as their figures point to a jump in imports, but U.S. data shows little change.

• British consumer spending fell for the third month in a row in July in its longest losing streak in over four years, according to data released on Monday, in another sign that the impact of last year's Brexit vote is rippling through to households.

Overall consumer spending, the engine of the British economy, dropped by 0.8 percent in real terms last month compared with July 2016, payments company Visa said.

• German industrial production unexpectedly fell for the first time this year in June, data showed on Monday, though it increased in the second quarter overall.

Output declined by 1.1 percent on the month after rising 1.2 percent in May, the Economy Ministry data showed. Expectations in a Reuters poll were for a 0.2percent gain.

But factories and construction firms in Europe's largest economy produced 1.8 percent more in the April-June period than in the first quarter and the ministry said order levels, along with business climate indicators, pointed to the upward trend continuing.

• South Korean President Moon Jae-in and his U.S. counterpart, Donald Trump, agreed to apply maximum pressure and sanctions on North Korea in a telephone call on Monday, while China expressed hope that North and South Korea could resume contact soon

• Germany's 10-year government bond yield dipped 1 basis point to 0.46 percent -- within sight of a one-month low touched on Friday at 0.45 percent.

Germany's benchmark 10-year government bond yield dipped towards recent one-month lows on Monday, as news of an unexpected fall in German industrial output supported a view that any unwinding of euro zone monetary stimulus is likely to be slow.

• Oil prices edged down on Monday but still held near nine-week highs, supported by robust U.S. jobs data last week and a slight fall in the U.S. drilling rig count, even as rising output from OPEC reined in crude markets.

Global benchmark Brent crude futures were down 18 cents, or 0.34 percent, at $52.24 a barrel at 0655 GMT.

U.S. crude futures were down 18 cents, or 0.36 percent, at $49.40 per barrel.


Reference: Reuters

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