OIL: Crude sways with dollar ahead of China data
SINGAPORE, Oct 21 (Reuters) - Oil swayed from gains to losses early on Thursday, trading in a range of $82 to $83, as the dollar strengthened on speculation about the size and timing of an expected stimulus to the U.S. economy.
Oil rebounded nearly 3 percent on Wednesday, the biggest daily percentage gain in more than a month, as a weaker dollar, stronger equities and a smaller-than-expected rise in U.S. crude stockpiles whetted investors' risk appetite.
COMMODITY MARKETS: Markets jump as dlr slides on expected Fed easing
NEW YORK, Oct 20 (Reuters) - Most commodities rose on Wednesday in a sharp rebound from the previous day's losses, as the dollar slid when an influential consultancy predicted a half trillion dollars in U.S. government debt purchases from the Federal Reserve.
"Most of this broad-based commodity rally is pretty well tied to the dollar, which had managed a steep and sharp rally yesterday, but sold off today," said Sterling Smith, an analyst for Country Hedging Inc. in St. Paul, Minnesota.
GLOBAL MARKETS: Dollar falls on Fed easing talk, stocks jump
NEW YORK, Oct 20 (Reuters) - The U.S. dollar slid on Wednesday as investors expected the Federal Reserve will soon offer more economic stimulus, while stocks and commodities recovered after China's surprising interest-rate hike.
"Dollar weakness into the Nov. 3 FOMC meeting is the clearest trade right now. Investors want to continue on that path," said Amelia Bourdeau, senior currency strategist at UBS in Stamford, Connecticut. "(Many) currencies dipped against the dollar yesterday and investors are buying them back."
GLOBAL ECONOMY-China ups rates while rich world stays loose
BEIJING/TOKYO Oct 19 (Reuters) - China unexpectedly raised interest rates on Tuesday, a day after U.S Treasury Secretary Timothy Geithner vowed Washington would not devalue the dollar for its own advantage.
The 25 basis point rate rise by the People's Bank of China -- the first in nearly three years -- took markets by surprise and pushed the dollar to the day's high against a currency basket.
Officials hint Fed on the verge of more easing
WASHINGTON, Oct 19 (Reuters) - A string of U.S. Federal Reserve officials on Tuesday indicated the central bank will soon offer further monetary stimulus to the economy, with one saying $100 billion a month in bond buys may be appropriate.
While internal differences on the unconventional policy are still evident, the consensus view at the Fed appears to be that the economy is weak enough to warrant further support, most likely through increased purchases of Treasury debt.
PRECIOUS-Gold recovers lost ground as dollar retreats
LONDON, Oct 20 (Reuters) - Gold prices rose back above $1,340 an ounce in Europe on Wednesday, recovering some of the previous session's hefty losses, as the dollar ceded ground to a basket of currencies after its move higher.
"What we saw yesterday was more of a panic selling in response to the surprise rate hike by China," said Richcomm Global Services analyst Pradeep Unni. "Fundamentally however, nothing has changed...and the weakness in the dollar persists."
FOREX-Dollar slips as China rate hike impact wanes
LONDON, Oct 20 (Reuters) - The dollar fell against a basket of currencies for the first time in four sessions on Wednesday, as appetite for higher-yielding currencies stabilised after being jolted by a surprise interest rate hike by China.
"I think the move itself indicated how excessive positioning in the market was, but any correction in the dollar will be short and shallow," said Derek Halpenny, European Head of Global Currency Research at BTM-UFJ. "The main driver will be QE from the Fed and that should weigh on the dollar."
Equities recover from China shock, dollar slips
LONDON, Oct 20 (Reuters) - Financial markets recovered some of the composure lost after China's surprise interest rate hike, with stocks slightly higher and the dollar falling back from the previous session's sharp gains.
"The dollar's move down through September went too far and was overdone. This bounce we saw is part of a healthy correction," said Jane Foley, senior currency strategist at Rabobank.
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