Published: Tue, June 20, 2017
Economy | By Annette Adams

Fed's Dudley confident US expansion has `long way to go'

Fed's Dudley confident US expansion has `long way to go'

"I do see some support from uncertainty about the United Kingdom government and the start of Brexit negotiations".

Europe, however, had a more upbeat session on Friday, with British (.FTSE), German (.GDAXI) and French (.FCHI) stocks, as well as the broader STOXX Europe 600 (.STOXX), all closing higher.

The dollar was subdued after USA homebuilding fell for a third month in May to the lowest in eight months and a barometer of US consumer sentiment unexpectedly fell in early June, prompting concerns about the Federal Reserve's plans to stick with its monetary policy tightening. The Australian dollar stood near 2-1/2 month peak against U.S. dollar on Monday as Australian was aided by upbeat economic data and as the price of iron ore, the country's No. 1 export earner, steadied following steep falls in recent weeks.

The US dollar was one of the best performing major currencies after receiving a boost from some hawkish comments from New York Federal Reserve President William Dudley. It touched its strongest in 3-1/2 months on Wednesday at C$1.3165. Overall, the Fed's rhetoric so far has been favourable for the greenback, especially since the USA central bank appears to be looking through soft inflation and is still holding an overall hawkish view. Monday's data from the Australian Bureau of Statistics showed national sales rose a seasonally adjusted 2.9 percent in May, from April when they edged up 0.3 percent.

The S&P 500 index (.SPX) closed flat, the Dow Jones Industrial Average (.DJI) ended up 0.1 percent and the Nasdaq (.IXIC) lost 0.2 percent.

Chicago Fed President Charles Evans will be at the Money Marketeers of New York University on Monday evening, where he is expected to talk about current economic conditions and monetary policy.

The 10-year notes were last down 4/32 in price to yield 2.17 percent.

Spot gold rose 0.1 % to $1,243.90 per ounce, as of 0044 GMT, after it hit a fresh near five-week low of $1,242.61 during the session.

USA gold futures for August delivery fell by 0.37% to $1,251.7 an ounce.

Oil prices gave up early gains and turned negative as rising production in the United States, Libya and Nigeria have foiled an OPEC-led effort to support the market by cutting output. Brent settled 1 percent lower at $46.91.

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