Tag: United States dollar

What’s in the Trump budget?

What’s in the Trump budget?

The administration calls for directing $17 billion to fight and address the scourge of opioid addiction, which Trump labeled a national health emergency in October.
This includes funding for traditional efforts, such as grants and Medicare funding for treatment programs.
The outline includes an $18 billion request to fund construction of a border wall, including $1.6 billion for “approximately 65 miles of border wall in south Texas.”
The administration is also asking for funding for technology improvements to make the immigration system more efficient.
The proposal also calls for states to create paid family leave programs similar to the unemployment insurance system.
The proposal calls for a fairly substantial overhaul of the Education Department’s student loan programs, including consolidating the increasingly common income-based repayment plans into a single program.
It also proposed changes to aid programs for low-income students, such as turning the Federal Work Study program into a job training initiative.
The proposal outlines how several government departments are focusing resources and time on fossil fuel programs, largely at the expense of renewable energy and climate change programs.
The Defense Department is asking for a major boost in military spending for 2019, requesting Congress approve a budget of $686 billion — one of the largest in its history.
The Community Development Block Grant, or CDBG, provides funding to organizations like Meals on Wheels; the program received an outpouring of support last year when the administration also proposed eliminating CDBG.

British pound drops, set for worst week in a year on talk of early U.K. election

British pound drops, set for worst week in a year on talk of early U.K. election

The ICE U.S. Dollar Index DXY, +0.09% , which measures the U.S. currency against six rivals, was up 0.13% to 94.010.
Against the euro, the pound EURGBP, +0.4032% was off about 0.1%, with one euro buying £0.8939.
Sterling is now set for a 2.5% weekly tumble, its biggest since the week ending Oct. 7, 2016, when the currency lost 4.1% against the dollar after a flash crash. Continued gridlock with Brussels over negotiations around the U.K.’s exit from the European Union is also raising questions about the U.K. leader.
For the dollar, investors will home in on Friday’s release of nonfarm payrolls and unemployment data. The monthly jobs report is expected to give further clues to the likelihood of a December interest rate increase by the Federal Reserve. Nonfarm payrolls for September, the unemployment rate and average hourly earnings are all due at 8:30 a.m. Eastern Time.
Lawler noted that the ICE Dollar Index hit a seven-week high in the Asian session on Friday.

Dollar pares loss after better-than-expected data

Dollar pares loss after better-than-expected data

The ICE U.S. Dollar Index DXY, -0.13% which measures the U.S. currency against six rivals, was off 0.1% at 93.458 on Thursday morning in New York.
European currencies were helped by better-than-expected purchasing managers index readings on the service sector.
Compared with the Swiss franc USDCHF, +0.0000% the greenback bought 0.9749 francs, slightly up from 0.9737 late Wednesday.
Janet Yellen delivered the opening remarks at a conference on community banking at the St. Louis Fed Wednesday afternoon, where she refrained from commenting on monetary policy.
Friday’s release of nonfarm payrolls and unemployment data for September is in focus for traders, as the data are expected to give further clues regarding the likelihood of a December interest rate increase by the Federal Reserve.
“A disappointing figure may encourage short term bears to target 93.00,” Lukam Otunuga, research analyst at online broker FXTM said.
The Markit services PMI was reported at 55.3 for September, slightly below the August figure of 56.

Dollar Edges Lower Ahead of Jobs Data

Dollar Edges Lower Ahead of Jobs Data

The U.S. dollar edged lower Tuesday as the market paused ahead of jobs data that will be released later this week.
The dollar fell 0.1% against the euro to $1.1746.
Several said signs of solid jobs growth will help justify an additional interest-rate increase by the Fed this year. Economists surveyed by The Wall Street Journal predict employers added 80,000 workers in September, with average hourly earnings rising 0.3% and the unemployment rate holding at 4.4%. The economy added 156,000 jobs in August, while hourly wages rose 0.1% and the jobless rate held at 4.4%.
Fed-funds futures, used by investors to bet on central bank policy, late Tuesday showed a 78% probability that the Fed raises interest rates by the end of the year, up from around 44% a month ago, according to CME Group.
Elections in the eurozone have rattled currency markets recently. The euro fell 0.7% against the dollar Monday after an independence vote in the Spanish province of Catalonia. Austria’s legislative election in October and Italian elections expected to be held by May 2018 could also raise risks for the euro, analysts said.
Investors have also been watching for developments as President Donald Trump considers replacing Federal Reserve Chairwoman Janet Yellen.

Dollar index rises, on track for best weekly gain of 2017

Dollar index rises, on track for best weekly gain of 2017

The ICE U.S. Dollar Index DXY, -0.06% which measures the buck against a basket of six major rivals, eased less than 0.1% to 93.194. It traded midweek at around the highest levels since Aug. 23, according to FactSet data, helping to salvage the slender monthly gain.
The WSJ U.S. Dollar index BUXX, +0.03% which compares the dollar against 16 other currencies, was 0.1% weaker at 86.38.
Earlier this week, the U.S. currency traded above ¥113 for the first time since mid-July, according to FactSet data.
Against the Canadian dollar USDCAD, +0.5472% the greenback rose to C$1.2489 from C$1.2428 late Thursday, after Canada’s gross domestic product by industry remained flat in July, compared with the FactSet consensus forecast of 0.1%.
Meanwhile, the Bank of England hinted that rates could rise for the first time in a decade in November.
Softer GDP data triggered a down move in the pound.
Personal income for August rose 0.2%, more than the MarketWatch consensus forecast of 0.1%, while consumer spending for the same month increased 0.1%, in line with the consensus.

MARKET SNAPSHOT: Dow Losses Grip On 22,000 Level As Stock-market Downturn Enters 3rd Day

MARKET SNAPSHOT: Dow Losses Grip On 22,000 Level As Stock-market Downturn Enters 3rd Day

MARKET SNAPSHOT: Dow Losses Grip On 22,000 Level As Stock-market Downturn Enters 3rd Day.
North Korean tensions help to undercut investor optimism U.S. stock-index benchmarks opened firmly lower on Thursday as Wall Street extended its recent move south amid persistent tensions between the U.S. and North Korea.
Dow Jones Industrial Average traded down 87 points, or 0.4%, at 21,963, while the S&P 500 index off 12 points, or 0.5%, to 2,461.04, with all of the index’s 11 sectors trading in the red.
North Korea also laid out detailed plans of how it would launch a missile strike on U.S. military bases in Guam (http://www.marketwatch.com/story/north-korea-details-plan-to-fire-missiles-toward-guam-says-only-absolute-force-will-work-with-trump-2017-08-09).
If it’s North Korea, I don’t think this will be a fruitful period for equity investors,” Nick said.
Stocks finished off their lows, but still held on to losses Wednesday (http://www.marketwatch.com/story/us-stock-futures-pull-back-as-north-korea-threatens-guam-2017-08-09), as investors remained anxious about the U.S.-North Korea war of words and a clutch of disappointing earnings reports.
Meanwhile, traders absorbed a report on jobless claims (http://www.marketwatch.com/story/us-jobless-claims-rise-by-3000-to-244000-2017-08-10) that showed that initial claims for U.S. unemployment-insurance benefits continue to reflect a strong labor market, even as they inched slightly higher.
The number of people who applied for U.S. unemployment-insurance benefits rose by 3,000 to 244,000 in the week that ended August 5, the Labor Department reported.
Meanwhile, U.S. wholesale prices (http://www.marketwatch.com/story/us-wholesale-inflation-fall-01-in-july-first-decline-in-almost-a-year-2017-08-10) declined in July for the first time in almost a year, providing additional evidence of tepid inflation that is bedeviling the Federal Reserve.
Shares of Kohl’s (KSS) declined 1.3% after an earnings beat (http://www.marketwatch.com/story/kohls-stock-jumps-premarket-after-earnings-beat-2017-08-10).

Why the U.S. Dollar May Have Finally Hit a Bottom

Why the U.S. Dollar May Have Finally Hit a Bottom

But the bigger piece of news was that wage growth saw its biggest month-over-month gain since October.
On the heels of those strong numbers, and other signs the economy is strong, the dollar rose off a one-year low.
After being beaten down for the first half of the year, there are signs that a bottom might be in place for the UUP and that it might retrace some of its losses.
This can be considered a double bottom and now makes the $24 level very strong support given that it has held this level twice on a long-term time frame.
This represents a 38.2% retracement of the sell-off from the start of the year.
The next target would be $25.37 which is the 50% retracement of the move.
Should the UUP get to this level, how the ETF reacts at these levels will be a good indication as to whether the bounce was short-term in a new long-term downtrend, or if the bounce represented a change in the long-term direction of the dollar.
For the time being, using $24 as a pivot point looks to be the smartest approach to trading the dollar.
The Bottom Line The U.S Dollar, represented by UUP, had a strong bounce back Friday afternoon after better-than-expected July jobs numbers.
The $24 level on the UUP acts as a major pivot point, because above it, a bounce seems likely given an emerging positive technical backdrop.

U.S. Stocks Rise After Jobs Report

U.S. Stocks Rise After Jobs Report

U.S. Stocks Rise After Jobs Report.
U.S. stocks up after jobs report — Government bond yields and the U.S. dollar rise — Euro close to 2 1/2-year high U.S. stocks rose Friday after the monthly jobs report showed employers continued hiring at a healthy rate in July.
The Dow Jones Industrial Average added 51 points, or 0.2%, to 22086 shortly after the opening bell, on course to notch a weekly gain.
Hiring in July Was Better Than Expected Friday’s monthly jobs report was the latest news to show the labor market continues to be a bright spot in the U.S. economic recovery.
Another bright spot from the morning’s jobs report: labor-force participation rose while the unemployment rate declined, remaining near a 16-year low.
Continued signs of strength in the labor market, matched by earnings growth, should bode well for stock gains heading into the end of the year, Mr. Jones said.
Dollar, Treasury Yields Rise The U.S. dollar and government bond yields, both of which have been sensitive to expectations of the Fed’s interest-rate path, rose following the report. “The euro is getting so strong it may hurt some company profits already.
Especially those ones with big overseas holdings,” said Bob Homan of ING Investment Office.
The euro was last down 0.2% against the U.S. dollar, but up 11% against the currency year-to-date.

Judge pleads guilty in massive Social Security fraud case
Social Security Disability

Judge pleads guilty in massive Social Security fraud case

Judge pleads guilty in massive Social Security fraud case.
An administrative judge involved in one of the biggest Social Security frauds in history pleaded guilty Friday, admitting that he helped scam the federal government out of potentially more than half a billion dollars in bogus disability payments.
David B. Daugherty, a former administrative law judge, approved at least 3,149 disability cases filed by a single lawyer in eastern Kentucky.
“This case proves once again that more needs to be done to stop disability fraud across America.
Daugherty instructed Conn on how to write up bogus applications so he could approve them without ever needing to have the applicants appear for an in-person hearing, according to court documents, speeding the process along.
Conn collected more than $7 million in payments for filing bogus applications while the scam was operating from 2004 to 2011, and paid Daugherty $609,000 during that time.
At a rate of nearly $100,000, Daugherty was adding a tremendous supplement to his annual pay as an administrative law judge.
Social Security officials testified to Mr. Johnson’s subcommittee last month that they can’t give even a ballpark estimate for how much fraud exists in the $150 billion-a-year disability program.
Sean Brune, assistant deputy commissioner at the Social Security Administration’s budget office, also said during last month’s hear that his agency doesn’t have the power to strip Daugherty of his government pension.
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