Dollar Steady; Seeks Trading Cues Ahead of Data

 


Snapshot: 

        -Dollar steady; 10-year Treasury yield at 2.20%; stock futures lower; Nymex at $46.38, gold at $1092.30
        -Watch for: personal income and outlays; Fed Governor Jerome Powell keynotes event; US manufacturing PMI; ISM manufacturing report on business; construction spending; global manufacturing PMI; Canada civic holiday: financial markets closed; earnings from: Tyson, Clorox, AIG
        News: Kerry Presses Egypt for Political Changes; Canada's Leader Triggers Start of Election Campaign; U.S. to Defend New Syria Force From Assad Regime
        The dollar was slightly higher against the yen and the euro in early trade Monday, with a lack of fresh trading cues leaving investors with little reason to make any major moves.
        The greenback edged up early in the Asian session to Y124.12, regaining some of the ground lost Friday after disappointing U.S. employment-cost data cast doubt on a September rate increase by the Federal Reserve.
        The dollar "remains directionless in a comfort zone," said Yuzo Sakai at Tokyo Forex & Ueda Harlow, adding that market participants have little choice but to avoid making major trades in the absence of catalysts.
        With the dollar lacking direction, investors are increasingly shifting their attention to highly anticipated U.S. jobs data for July on Friday.
        "The heightened attention on the upcoming labor data is unusual," said Koji Fukaya at FPG Securities.
        Up ahead in economic data, figures for U.S. personal income and spending are due, with economists polled by MarketWatch expecting a rise of 0.3% in each case. A reading on core inflation in June is also due.
        A reading for Markit's purchasing managers' manufacturing index is expected, followed by construction spending and the Institute for Supply Management's manufacturing index.
        At 2.27am ET, the 10-year U.S. Treasury note was marginally weaker early in European trade, with its yield at 2.20% -- slightly higher on the day. The 10-year yield tumbled on Friday, as the U.S. employment-cost index, a broad measure of workers' wages and benefits, climbed the least in a quarter since record keeping began in 1982. Tame wages may support the Fed's cautious mode on raising interest rates.
        U.S. stocks looked on track to edge lower at the open Monday, as sentiment was hurt by another drop by Chinese stocks, offsetting mostly positive action by European equities.
        U.S. investors will watch for fresh readings on personal income, consumer spending, manufacturing and construction, plus earnings from companies like Tyson and Clorox.
        S&P 500 futures were last down 1.90 points, or 0.1%, while those for the Dow dipped by 11 points, or 0.1%. Nasdaq futures shed 7 points, or 0.2%.
        "Another month has gone by, and U.S. equities are still awaiting a resolution to their nine-month trading range," said Jonathan Krinsky at MKM Partners.
        He said the difference between the top- and worst-performing industries in the S&P 500 continues to grow. "At some point, this divergence needs to be rectified, but for now the beat goes on," he said.
        Elsewhere, global stocks had a cautious start to the week, with investors focusing on disappointing Chinese manufacturing data and the reopening of Greece's equity market after a five-week closure.
        In early trade, the Stoxx Europe 600 gained 0.2%. In Asia, equities dropped after a gauge of Chinese factory-floor activity slumped to a two-year low and as declines in commodity prices continued to worry investors.
        Oil prices slid to fresh multi-month lows Monday as bearish supply and demand data added to the negative sentiment.
        "The prospects of a second half-year price rebound have evaporated and there is a clear and present danger of prices revisiting the previous lows of the year," said David Hufton at PVM.
        At 5.36am ET Brent crude, the global oil benchmark, fell 2.2% to $51.08 a barrel on London's ICE Futures exchange, trading near its lowest level since January. On the New York Mercantile Exchange, West Texas Intermediate futures were trading near levels not seen since March, down 1.6% at $46.38 a barrel.
        Gold was 0.3% lower at $1,092.30 a troy ounce.
        Kerry Presses Egypt for Political Changes
        U.S. Secretary of State John Kerry pressed Egypt's leadership to move forward with political reform as part of a strategy to combat religious extremism, citing elections this fall as an important test.
        Canada's Leader Triggers Start of Election Campaign
        Canadian Prime Minister Stephen Harper ordered the country's Parliament to be dissolved, kicking off an extended election campaign in which the Conservative leader will vie for a fourth term Oct. 19.
        U.S. to Defend New Syria Force From Assad Regime
        President Barack Obama has authorized using air power to defend a new U.S.-backed fighting force in Syria if it is attacked by Syrian government forces or other groups, raising the risk of the American military coming into direct conflict with the regime of President Bashar al-Assad.
        Eurozone PMI Survey Shows Collapse in Greek Manufacturing Output
        Uncertainty over the country's future relationship with the eurozone sent Greek manufacturing into a tailspin in July, but that had little impact on other parts of the currency area's economy, as Italian factories had their best month in more than four years.
        EPA's New Emissions Rule to Alter Energy Landscape
        The Environmental Protection Agency's new rules on carbon emissions from power plants will alter the way Americans make and consume electricity, accelerating a dramatic shift to cleaner fuels, renewable energy and consumer choice.
        Iran's President Says Nuclear Deal Will Help Economy
        Iran's landmark nuclear deal will revive a domestic economy that has struggled under a decade of sanctions, Iranian President Hassan Rouhani said in a nationally televised speech Sunday.
        Iran Planning to Bolster Airplane Fleet
        Iran wants to buy up to 90 airplanes a year from Boeing and Airbus to revive its aging fleet following last month's landmark nuclear deal, according to a report by the official Islamic Republic News Agency.
        Write to Sarka Halas at sarka.halas@wsj.com
        (END) Dow Jones Newswires
        August 03, 2015 05:52 ET (09:52 GMT)

#FX
#Forex
#SalesForex
#LeaderTrigger
#NewSyriaForce
#AssadRegime
#ElectionCampagin