• The dollar fell on Monday, pressured by data showing persistently low wages that will likely constrain the U.S. Federal Reserve from raising interest rates more than three times this year.
In late trading, the dollar fell 0.4 percent against the yen to 106.37 yen, and was down 0.5 percent at 0.9470 franc versus the Swiss currency.
The euro, meanwhile, rose against the dollar to $1.2335, pushing the dollar index down 0.2 percent at 89.90.
• “Mixed messages on America’s labour market last week largely offset and, importantly, failed to move the dial in favour of faster rate hikes from the Fed,” said Joe Manimbo, senior market analyst at Western Union Business Solutions in Washington.
“To excite the dollar and move the needle for the Fed to raise rates at a quicker pace, wage growth would need to move above 3 percent,” he added.
• Average hourly earnings edged up four cents, or 0.1 percent, to $26.75 in February, a slowdown from the 0.3 percent rise in January. That lowered the year-on-year increase in average hourly earnings to 2.6 percent from 2.8 percent in January.
• Aside from the trade debate, key U.S. inflation numbers are potentially set to create more uncertainty for investors with the release on Tuesday of consumer price data and the producer price index due on Wednesday.
• “Any markedly weaker-than-expected inflation readings this week could lead to a boost for stocks and further pressure on the struggling dollar,” said James Chen, head of research at Forex.com in Bedminster, New Jersey.
• U.S. Commerce Secretary Wilbur Ross will urge the European Union to lower its trade barriers, U.S. President Donald Trump said on Monday, calling them unfair to U.S. farmers and industry, a view rejected by the EU and challenged by a Republican senator.
• United States Steel Corp (X.N) raised its full-year earnings forecast on Monday, as the biggest U.S. steel maker expects to benefit from President Donald Trump’s imposition of hefty tariffs on imported steel and aluminum.
U.S. Steel said it expects net earnings of $885 million for 2018, compared with its prior forecast of about $685 million.
• President Donald Trump spoke on Monday with Canadian Prime Minister Justin Trudeau about the steel and aluminum import tariffs Trump announced last week, the White House said.
Trump also emphasized the importance of quickly concluding ongoing negotiations on the North American Free Trade Agreement (NAFTA)“to ensure the vitality of United States and North American manufacturing industries and to protect the economic and national security of the United States,” the White House said in a statement.
• U.S. President Donald Trump’s decision to slap tariffs on imported steel and aluminum could spark retaliation from other countries and lead to unforeseen consequences, the head of the World Trade Organization said on Monday.
• U.S. national security adviser H.R. McMaster said on Monday that Washington is optimistic about an opportunity for President Donald Trump to meet with North Korean leader Kim Jong Un but is determined to keep up pressure on Pyongyang to denuclearize.
• House Intelligence Committee Republicans said on Monday the panel had finished conducting interviews in its investigation of Russia and the 2016 U.S. election, and found no collusion between President Donald Trump’s associates and Moscow’s efforts to influence the campaign.
• The White House said on Monday it fully expects an unprecedented meeting between U.S. President Donald Trump and North Korean leader Kim Jong Un to take place, if North Korea sticks to its promises, even though Pyongyang has yet to comment publicly on the possibility of a summit.
• U.S. President Donald Trump issued an order on Monday prohibiting Broadcom Ltd’s (AVGO.O) proposed takeover of Qualcomm Inc (QCOM.O) on grounds of national security.
Qualcomm has rebuffed Broadcom’s $117 billion takeover offer, which is under investigation by the Committee on Foreign Investment in the United States, a multi-agency panel led by the Treasury Department that reviews national security implications when foreign entities take over U.S. corporations.
• Investor concerns about rising U.S. oil output sent crude prices down on Monday, but investors stayed bullish on U.S. Treasuries despite an increased supply of three- and 10-year notes.
U.S. crude was last at $61.37, down 1.08 percent. Brent LCOcv1 was last at $64.96, down 0.81 percent on the day. During the session, U.S. crude fell as much as 2.21percent. Some of that early slide was probably profit-taking after a rise on Friday, said Jim Ritterbusch, president of energy advisory firm Ritterbusch & Associates.
On Monday, benchmark 10-year notes US10YT=RR last rose 8/32 in price to yield 2.8663 percent, hovering near multi-year highs.
Reference: Reuters
Thai
Eng