• MTS Economic News_20180504

    4 May 2018 | Economic News


• The dollar held steady against a basket of currencies on Friday, having retreated from four-month highs on profit-taking, with the focus on whether U.S. jobs data will provide the spark for another push higher.

The dollar’s index against a basket of six major currencies held steady at 92.417 .DXY. That was down from a peak of 92.834 set on Wednesday, the greenback’s strongest level since late December.

The dollar index has climbed more than 0.9 percent so far this week, putting it on track for a third straight weekly gain.

The euro held steady at $1.1987 EUR=, staying above a near four-month low of $1.1938 set on Wednesday.

The U.S. dollar eased 0.1 percent to 109.08 yen JPY=, down from a three-month high of 110.05 yen struck on Wednesday.

• Prime Minister Theresa May’s Conservative Party avoided a wipeout in London local elections and eked out gains in Brexit-supporting regions elsewhere, partial results on Friday showed, denting the opposition Labour Party’s hopes of a big win.

The elections are viewed as a gauge of public support for May as she faces a possible revolt in parliament over her strategy for leaving the European Union.

Results showed May was likely to avoid the kind of widespread losses that would dramatically weaken her authority over Conservative lawmakers ahead of key tests of her plans to take Britain out of the EU customs union as it quits the EU.

The overall tally, not due until 1900 GMT, will offer the most complete snapshot of public opinion since an election last year in which the Conservatives suffered unexpected losses, leaving May weakened and her party arguing openly about Brexit.

· President Donald Trump is expected to pull the United States out of the Iran nuclear agreement on May 12. Tehran signed the Joint Comprehensive Plan of Action, with China, France, Germany, Russia, Britain, and the United States in 2015.
• U.S. job growth likely accelerated in April after a weather-related slowdown in the previous month, with the unemployment rate expected to drop to near a 17-1/2-year low of 4.0 percent.

Non-farm payrolls probably increased by 192,000 jobs last month, according to a Reuters survey of economists. Payrolls rose by 103,000 positions in March, the smallest gain in six months, which economists dismissed as payback after unseasonably mild weather boosted hiring by 326,000 jobs in February.

• The U.S. stands ready to impose further trade tariffs on Chinese products if Beijing walks away from agreed-upon commitments, according to a reporter at the Wall Street Journal.

Trade representatives from the U.S. and China entered a second day of trade discussions on Friday, as the world's two largest economies sought to find a way to stave off global concerns of a full-blown trade war.

The discussions, led by Treasury Secretary Steven Mnuchin and Chinese Vice Premier Liu He, are expected to cover a wide range of U.S. complaints about alleged unfair trade practices in Beijing. A major breakthrough deal to fundamentally change China's economic stance was widely viewed as highly unlikely.

• Oil prices were little changed on Friday after rising earlier, as market jitters kicked in over the prospect of geopolitical risks from possible new U.S. sanctions against Iran.

U.S. West Texas Intermediate (WTI) crude futures were trading 15 cents lower at $68.28 per barrel by 0719 GMT. WTI is set for gain of 0.3 percent for the week.

Brent crude oil futures were at $73.37 per barrel, down 25 cents, or 0.3 percent, from their last close after touching a intraday high of $73.80 per barrel in early morning trading. Brent futures for July delivery are set for a weekly drop of 0.5 percent.


Reference: Reuters, CNBC


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