Dollar Softer, Treasurys Unchanged

 
Snapshot: 

        -Dollar softer; 10-year Treasury yield at 2.317%; U.S. stock futures higher; Nymex at $49.39; gold at $1098.47
        -Watch for: Chicago Fed index; Kansas Fed survey; U.S. weekly jobless claims; Bloomberg consumer comfort; Canada May retail sales, job insurance claims; IMF press briefing; earnings from General Motors, Comcast, McDonald's, Caterpillar, Nasdaq OMX, KKR, United Continental, Southwest Airlines, 3M, Dow Chemical, Amazon.com, AT&T, Starbucks, Visa
        News: Fed Banker: Greek Lawmakers Pass Second Set of Economic Overhauls; New Zealand Cuts Key Interest Rate to 3%; NYSE, Nasdaq Planning Pact to Back up Each Other's Closing Auctions
        The U.S. dollar traded slightly softer as Treasury yields remained pressured. The RBNZ trimmed its key rate by 25 bps to 3% with a more-hawkish statement than expected. This, combined with some in the market positioning for a 50 bps cut, led to a sharp rebound in the Kiwi dollar.
        In Europe, the euro was 0.6% higher against the dollar at $1.0987. Analysts said there was no specific catalyst for the move, which reverses part of the common currency's decline last week.
        The British pound gave up its early gains against the dollar to fall 0.1% to $1.5595 following disappointing U.K. retail sales data.
        U.S. Treasurys were little changed in Europe as traders take stock ahead of next week's FOMC meeting. Heavy corporate bond supply is capping any upside moves in USTs while Wednesday's strong U.S. housing data "added to the mildly hawkish nearer-term Fed repricing," said Morgan Stanley. The September Treasury contract was 1/32 higher at 126-110 and the 10-yr yield was little changed at 2.317%.
        U.S. stock futures pointed to a higher open on Wall Street Thursday, ahead of another packed earnings day, as well as weekly jobless claims data.
        "On the whole US earnings have come in broadly ahead of expectations as companies shrug off concerns about the strong US dollar, but it should be noted that these expectations are coming off a low hurdle, and when compared to the same period last year the US dollar is over 20% stronger on a trade weighted basis, which suggests that at some point profitability will start on companies' ability to increase profits," said Michael Hewson at CMC Markets.
        Futures for the Nasdaq 100 index were up 11.25 points, or 0.24%, futures for the Dow gained 27 points, or 0.15%, while those for the S&P 500 index were up 3.25 points, or 0.15%.
        Later Thursday, U.S. weekly jobless claims are seen coming in at 278,000, compared with 281,000 previously, according to economists surveyed by The Wall Street Journal.
        European stocks were steady, as investors weighed the latest easing of Greece's debt crisis against recent falls in commodity prices.
        The Stoxx Europe 600 was 0.1% lower midmorning. The index had opened higher after an early-morning vote in Greece's Parliament approved a second batch of economic overhauls demanded by creditors, clearing the way for talks over a third bailout for the country.
        Oil prices remained weak in Asian trade after sharp losses in the previous session that drove Nymex oil futures below the $50 a barrel mark--the first time it has settled below that level since April 2.
        In addition to concerns over sustained U.S. oil supply despite falling prices, oil markets are also jittery over high export volumes from the Organization of the Petroleum Exporting Countries and only limited growth in global oil demand.
        "The OPEC production growth has stoked market fears of further oversupply, as crude stocks in Europe and Asia show signs of building," said Michael Wittner at Societe Generale.
        At 05.38am ET, Brent crude was spotted up 0.11%% to $56.17 a barrel. On the New York Mercantile Exchange, light, sweet crude futures for delivery in September were 0.10% higher at $49.25 per barrel.
        Spot gold prices were higher in Europe. At 0308am ET, gold traded up 0.4% at $1,098.47/oz, due to a slightly weaker dollar. Gold was trading within a narrow $5 range. More broadly, the low gold price environment may cause investors to re-examine their gold mining investments.
        Greek Lawmakers Pass Second Set of Economic Overhauls
        Greece's parliament early Thursday passed a second set of economic overhauls demanded by the nation's international creditors as a precondition for starting talks over a third bailout package
        New Zealand Cuts Key Interest Rate to 3%
        The Reserve Bank of New Zealand cut it key interest rate on Thursday and said further easing is likely.
        NYSE, Nasdaq Planning Pact to Back up Each Other's Closing Auctions
        The New York Stock Exchange and Nasdaq OMX Group Inc. are planning an agreement to back up each other's closing auctions in the event of an outage similar to the nearly four-hour trading halt at NYSE earlier this month.
        Fund Flips China View: Steer Clear
        Hedge fund Bridgewater Associates, an outspoken bull on China, says the country's recent stock-market rout will likely have broad, far-reaching repercussions.
        Bank of America Financial Chief Exits as Part of Shake-Up
        Bank of America is shaking up its management team, replacing its chief financial officer, its wealth-management chief and naming a new official to oversee the firm's stress tests with the Federal Reserve.
        Write to Sarka Halas at sarka.halas@wsj.com
        (END) Dow Jones Newswires

        July 23, 2015 06:23 ET (10:23 GMT)

#FX
#Forex
#SaleForex
#BarelMark
#AsianTrade
#OPEC_ProductionGrowht
#StokedMarket