Sterling slips for sixth straight session to year nadir versus dollar
Sterling titled lower in American trade to August, 2017 lows against the dollar, as Brexit concerns continue to overshadow trading, and following earlier positive labor and inflation data from the US today.
As of 03:01 GMT, GBP/USD inched down 0.05% to 1.2876, with an intraday high at 1.2912, and a year nadir at 1.2842.
Sterling is suffering from growing chances of an unorganized Brexit and increasing uncertainty about diplomatic and trade relations between Britain and the EU, after UK trade minister Liam Fox said recently that a no-deal Brexit is now more likely, blaming it on those committed to "“the purity of the EU’s ideology”.
British finance minister Philip Hammond called earlier this week on the finance sector in London to look for new paths for growth and expansion in emerging markets to compensate for potential losses in Europe after Brexit.
He accused France of leading an EU-wide effort to stifle the City with red tape, hampering their access to European markets.
US Labor, Inflation Data
Earlier US data showed producer prices were unchanged in July, compared to a 0.3% increase in June, and missing estimates of 0.2%.
Core prices, excluding food and energy, rose 0.1%, while those excluding trade services as well rose 0.3%, indicating solid momentum in the economy.
US unemployment claims fell surprisingly by 6 thousand to 213 thousand from 219K, beating expectations of an increase to 220K.
Continuing claims for the week ending July 28 rose 29 thousand to 1.755 million from 1.726 million, missing expectations of 1.730 million.
The final reading for business inventories rose 0.1% in June, compared to no-change in in the preliminary reading, and improving from a 0.6% surge in May.
Accumulated inventories indicate poor demand and are considered a negative sign for the economy.
Euro falls for first time in three sessions versus dollar
Euro fell below 1.16 versus dollar in American trade following earlier data and developments from the US and the euro zone.
As of 02:51 GMT, EUR/USD fell 0.27% to 1.1579, with an intraday high at 1.1610, and a low at 1.1576.
Italian Premier Giuseppe Conte has promised to work on containing the fallout on Italian companies from new US sanctions in Iran, while noting that his government is considering a more rigorous stance against Iran, but asserted the importance of coordination with European partners on that regard.
US Labor, Inflation Data
Earlier US data showed producer prices were unchanged in July, compared to a 0.3% increase in June, and missing estimates of 0.2%.
Core prices, excluding food and energy, rose 0.1%, while those excluding trade services as well rose 0.3%, indicating solid momentum in the economy.
US unemployment claims fell surprisingly by 6 thousand to 213 thousand from 219K, beating expectations of an increase to 220K.
Continuing claims for the week ending July 28 rose 29 thousand to 1.755 million from 1.726 million, missing expectations of 1.730 million.
The final reading for business inventories rose 0.1% in June, compared to no-change in in the preliminary reading, and improving from a 0.6% surge in May.
Accumulated inventories indicate poor demand and are considered a negative sign for the economy.
EIA: US natural gas inventories mark another buildup
The Energy Information Administration released its report on US natural gas inventories, showing another buildup of 46 billion cubic feet in the week ending August 3, adding to the 35B increase in the previous week, while analysts expected a 49B addition.
Total stocks are now up to 2.354 trillion cubic feet from 2.308 trillion in the weekending July 27, which is below the total of the same period in 2017 at 3.025 trillion, while also below the five-year average at 2.926 trillion.
Wall Street opens mostly higher as tech widens lead
US stock indices opened the fourth session of the week mostly higher, with the tech sector, led by the trio Apple, Amazon, and Microsoft, buoying NASDAQ and S&P 500 to near record highs
US Labor, Inflation Data
Earlier US data showed producer prices were unchanged in July, compared to a 0.3% increase in June, and missing estimates of 0.2%.
Core prices, excluding food and energy, rose 0.1%, while those excluding trade services as well rose 0.3%, indicating solid momentum in the economy.
US unemployment claims fell surprisingly by 6 thousand to 213 thousand from 219K, beating expectations of an increase to 220K.
Continuing claims for the week ending July 28 rose 29 thousand to 1.755 million from 1.726 million, missing expectations of 1.730 million.
The final reading for business inventories rose 0.1% in June, compared to no-change in in the preliminary reading, and improving from a 0.6% surge in May.
Accumulated inventories indicate poor demand and are considered a negative sign for the economy.
Stock Performance
As of 02:!6 GMT, Standard and Poor's 500 rose 0.08%, or 2.30 points to 2,860, while Dow Jones barely inched up 0.02%, or 5.94 points to 25,589.69.
Tech-heavy NASDAQ led the pack higher with a 0.30% profit, or 23.73 points to 7,912.06.