U.S. home sales unexpectedly fell for a second straight month in January, weighed down by a persistent shortage of houses that is pushing up prices and keeping first-time buyers out of the market. The National Association of Realtors said on Wednesday that existing home sales dropped 3.2 percent to a seasonally adjusted annual rate of 5.38 million units last month. December’s sales pace was revised down to 5.56 million units from the previously reported 5.57 million units. Economists polled by Reuters had forecast existing home sales rising 0.8 percent to a rate of 5.60 million units in January. Sales fell in all four regions lastRead More →

The dollar rose to its highest level in a week on Wednesday and world stocks fell for the third day as investors braced for minutes from the Fed’s last policy meeting to see if they would herald more rises in interest rates and global bond yields. Wall Street looked set for a weaker session, with equity futures down around 0.2 percent and the VIX volatility gauge up for the third day in a row. The dollar index, which measures the greenback against a basket of peers, rose 0.2 percent. The index has bounced almost 1 percent so far this week, after slumping 1.5 percent theRead More →

Eurozone business activity continued to rise at a steep pace in February, albeit with the rate of expansion cooling from the near 12-year high recorded in January. Price pressures and employment growth also remained elevated, though likewise saw rates of increase ease slightly. Business optimism about the coming year meanwhile ticked higher. The headline IHS Markit Eurozone PMI fell from 58.8 in January to 57.5 in February, according to the estimate, which is based on approximately 85% of usual final replies. The slower growth of business activity reflected an easing in the rate of increase of new orders which, while elevated, slipped to a five-monthRead More →

The DAX index has posted losses in the Wednesday session. Currently, the index is trading at 12,428.50 down 0.48% since the Tuesday close. On the release front, German and Eurozone Manufacturing PMIs slowed in January. The German PMI dipped to 60.3, shy of the estimate of 60.6 points. It was a similar story with the Eurozone PMI, which dropped to 58.5, shy of the estimate of 59.2 points. In the US, the key event is the Federal Reserve minutes from the January meeting. It continues to be a blue February for the DAX, which has declined 6.2% so far this month. The correction on the US stock marketsRead More →

Gold prices were clobbered on Tuesday, with the commodity booking its sharpest daily decline in more than a year, against a backdrop of a strengthening dollar and stabilizing equities. April gold GCJ8, -1.78% fell $25.10, or 1.9%, to $1,331.20 an ounce, marking the sharpest drop for actively traded futures since Dec. 14, 2016, when gold sank by $33.90, or 2.9% according to FactSet data. Meanwhile, March silver SIH8, -1.75% dropped 27.4 cents, or 1.6%, to $16.438 an ounce. Precious metals lost ground as the dollar sprung higher following last week’s sharp decline, which has mostly extended a protracted downtrend for the commodity-pegged currency. The ICERead More →

Oil prices were mixed Tuesday, with the U.S. benchmark gaining ground on its global counterpart thanks to Canadian pipeline problems. West Texas Intermediate futures for April delivery CLJ8, +0.10%  rose 53 cents, or 0.9%, to $62.08 a barrel. Brent crude LCOJ8, -0.84% the global benchmark, lost 8 cents, or 0.1%, to $65.59 a barrel. The move left the gap between Brent and WTI prices the narrowest in six months. The narrowing of the spread between the two benchmarks turns in large part on what’s occurring in Cushing, Okla., the Nymex delivery hub for WTI futures. Data from the Energy Information Administration released on Feb. 14Read More →

Senior Market Analyst Craig Erlam discusses this week’s key event risks, with the most notable being the UK jobs report and BoE inflation report hearing. Craig also gives his live analysis on EURUSD (11:04), GBPUSD (15:13), EURGBP (17:04), AUDUSD (18:36), USDCAD (20:02), GBPCAD (22:01), NZDUSD (24:47), USDJPY (25:44), GBPJPY (26:47) and EURJPY (28:24). USD/JPY – Dollar Punches Above 107 Yen, Fed Minutes Ahead Higher Yields Pushing Dollar Up IntermezzoRead More →

The CAC index is showing little movement in the Tuesday session. Currently, the index is at 5,259.80, up 0.07% since the close on Monday. On the release front, German and eurozone confidence reports for February beat the forecasts, but were weaker than the January releases. German ZEW Economic Sentiment came in at 17.8, beating the estimate of 16.0 points. Eurozone ZEW Economic Sentiment dropped to 29.3, above the estimate of 28.4. On Wednesday, Germany and the eurozone release manufacturing PMIs. In the US, the Federal Reserve will release the minutes of its January meeting.   Eurozone indicators continue to point upwards, and French manufacturing andRead More →

The DAX index has posted slight losses in the Tuesday session. Currently, the index is trading at 12,362.98, down 0.19% since the Monday close. On the release front, German and eurozone confidence reports for February beat the estimates, but slowed compared to the January releases. German ZEW Economic Sentiment came in at 17.8, beating the estimate of 16.0 points. Eurozone ZEW Economic Sentiment dropped to 29.3, above the estimate of 28.4. German PPI improved to 0.5%, above the estimate of 0.3%. This marked the strongest reading since January 2017. On Wednesday, Germany and the eurozone release manufacturing PMIs. In the US, the Federal Reserve will release theRead More →

The euro has posted considerable losses on Tuesday, after a slow start to the week. Currently, the pair is trading at 1.2341, down 0.53% on the day. On the release front, German and eurozone confidence reports for February beat the estimates, but slowed compared to the January releases. German ZEW Economic Sentiment came in at 17.8, beating the estimate of 16.0 points. Eurozone ZEW Economic Sentiment dropped to 29.3, above the estimate of 28.4. German PPI improved to 0.5%, above the estimate of 0.3%. This marked the strongest reading since January 2017. There are no US releases on the schedule. On Wednesday, Germany and the eurozone releaseRead More →