Dollar Drops as Trump Travel Ban, U.S. GDP Weigh

On Monday, the greenback drops against a basket of other major currencies as immigration, boundaries put in place by President Donald Trump highlighted worries about the economic influence of the new administration’s policies.

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On Monday, the greenback drops against a basket of other major currencies as immigration, boundaries put in place by President Donald Trump highlighted worries about the economic influence of the new administration’s policies.

In the  European morning trade on Monday , gold prices increases, starting the week off with gains as the dollar declined.

On Friday, Trump executed a travel ban on seven Muslim-majority countries and presented measures to stop refugees from entering the U.S.

The order generated legal challenges, widespread protests, international criticism and confusion over its execution at airports.

It also added worries over the potential destabilizing impact of the current administration’s protectionist policies.

The greenback also remained under pressure after Friday’s weaker than expected figures on U.S. 4th quarter development reduced expectations for a faster rate of interest rate hikes this year.

The  U.S. dollar index  was at 100.52 after declining to overnight lows of 100.14.

The yearly rate of economic growth reduced to 1.9% in the three months to December, the Commerce Department reported, declined sharply from the 3.5% rate of growth seen in the 3rd quarter.

In 2016, the economy grew just 1.6%  as a whole, it is the sluggish rate of growth since 2011.

The decreased  in growth prompted assumption that the Fed Reserve will avoid hiking interest rates too quickly.

Compared to the yen the dollar was lower,  with USD/JPY down -0.31% at 114.740, 7:36 AM (EST).

The euro and the pound slightly changed against the dollar, with EUR/USD at 1.0638 and GBP/USD  at 1.2500 7:18 AM Eastern Time.

On late Friday, USD/MXN declined 1.5% to 20.89, the lowest level since January 2.

On Friday, Trump and Mexican President Enrique Pena Nieto spoke on the phone, a day after the Mexican president withdraw a planned meeting over Trump’s demand that Mexico pay for a multibillion dollar border wall. Mexico declares it will not pay for the wall.

In the week onward, markets will be giving more  attention to Friday’s U.S. nonfarm payrolls report for January along with Wednesday’s policy statement by the Fed  Reserve.

Investors will also be observing central bank meeting in Japan and the UK.

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Apple Charges Qualcomm in Beijing Seeking 1 Billion Yuan

Apple Inc filed a complaint against Qualcomm Inc in Beijing, appealing 1 billion yuan ($145.32 million) in compensations, charging the chip supplier abused its clout in the chip industry, Beijing’s Intellectual Property Court stated in a statement on Wednesday.

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Apple Inc filed a complaint against Qualcomm Inc in Beijing, appealing 1 billion yuan ($145.32 million) in compensations, charging the chip supplier abused its clout in the chip industry, Beijing’s Intellectual Property Court stated in a statement on Wednesday.

Qualcomm is a main supplier to both Apple and Samsung Electronics Co Ltd for “modem” chips that connect phones to wireless networks. Together, the  two companies accounted for 40% of Qualcomm’s $23.5 billion in revenue in its current fiscal year.

A second lawsuit was filed by Apple Inc against Qualcomm, which accused it of failing to live up to promises made to license “standard essential patents” widely and economically.

Qualcomm stated in an emailed statement that it had not seen the full complaint against it filed in the Chinese court. However, executive vice president and general counsel  of Qualcomm stated Qualcomm had offered Apple the same terms as other customers after a 2015 regulatory ruling in China and that his company would defend its business model in Chinese courts.

“These filings by Apple’s Chinese subsidiary are just part of Apple’s effort  to find ways to pay less for Qualcomm’s technology,” Rosenberg said in the statement. “Apple was offered terms consistent with terms accepted by more than one hundred other Chinese companies and refused to even consider them.”

The lawsuits follow a decision by the U.S. Federal Trade Commission to file a complaint on Jan. 17 in which it blamed Qualcomm of using anticompetitive strategies to uphold its monopoly of a key semiconductor used in mobile phones.

Apple followed with a corresponding complaint last Friday, It requested a federal court in California for $1 billion in promised rebates and alleged Qualcomm of overpricing for chips.

Qualcomm did not respond immediately to a request for comment. The firm previously stated that it would fight both the Federal Trade Commission (FTC) and the Apple complaint filed in the United States.

In additional, the chip creator faces legal trials across the world.

Oualcomm was fined by South Korea’s antitrust regulator for 1.03 trillion won ($854 million) in December for what it called unfair practices in patent licensing, a judgment the U.S. chip maker said it will contest in court.

In February 2015, Qualcomm paid a $975 million fine in China after  a 14-month probe, while the EU in December 2015 alleged it of abusing its market power to prevent rivals.

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Cisco to Purchase AppDynamics for $3.7 Billion

On Tuesday, Cisco Systems Inc. agreed to purchase U.S business software company AppDynamics Inc. for approximately $3.7 billion, the largest deals of the company in the recent years as it aimed for the development beyond its core networking business.

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On Tuesday, Cisco Systems  Inc.  agreed to purchase U.S business software company AppDynamics Inc. for  approximately $3.7 billion, the largest deals of the company in the recent years as it aimed for the development beyond its core networking business.

This acquisition happens to be the largest buying activity of Cisco since it bought security company Sourcefire for $2.7 billion in 2013.

Legacy technology companies like Cisco have been trying to change their approach to stay in advance of technology developments, just like the rise of cloud computing, that could otherwise threaten their core businesses.

The AppDynamics whose software helps monitor and analyzes performance of their applications including NASDAQ Inc, Nike Inc and its new owner, Cisco, was gearing up to be the first tech company to go public this year.  It has around 2,000 paying customers.

Later today, the company is expected to  set price after the bankers increased the IPO’s estimated price that would have valued AppDynamics at as much as approximately $2 billion on earlier Tuesday.

According to the sources, Cisco agreed to pay about $26 a share, this is  above the company’s original price range of $10 to $12 a share.

Cisco has been a customer of AppDynamics for more than two years now. Cisco puts  a premium on the IPO price partly because of the company’s high revenue growth. During the  first nine months of 2016, AppDynamics lost approximately $95 million on revenue of $158 million, up approximately  54% from a year before.

AppDynamics, will become a new unit in Cisco’s Internet of Things and Applications business and will continue to be managed by CEO David Wadhwani.

In Addition, the $3.7 billion offer from Cisco is almost twice the $1.9 billion estimate AppDynamics received in its last financing round in November 2015.

“Cisco made an offer that people felt was compelling,” said Ravi Mhatre, a board member at AppDynamics from LightSpeed Venture Partners.

Goldman Sachs, Morgan Stanley  and Qatalyst advised AppDynamics while Fenwick & West were Cisco’s legal adviser.

The contract, which is a combination of cash and equity, is expected to end by April.

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Japan Stocks Decline at Close of Trade; Nikkei 225 down 0.49%

After the close on Tuesday, Japan stocks were lower as losses in the Manufacturing, Insurance and Transportation Equiptment sectors led shares to reduce.

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After the close on Tuesday, Japan stocks were lower as losses in the Manufacturing, Insurance and  Transportation Equiptment sectors led shares to reduce.

The Nikkei 225 declined 0.49% to hit a new 1-month low at the close in Tokyo.

The best players of the session on the Nikkei 225 were Alps Electric Co., Ltd. (T:6770), which increase 2.00% or 55.0 points to trade at 2806.0 at the close.

In the meantime, Asahi Group Holdings, Ltd. (T:2502) added 1.99% or 73.0 points to end at 3750.0 and IHI Corp.(T:7013) increased 1.98% or 6.0 points to 308.5 in late trade.

The Volatility of  Nikkei, which gauges the implied volatility of Nikkei 225 options, increased 3.36% to 20.61.

The Kansai Electric Power Co. (T:9503), which declines 4.94% or 64.5 points to trade at 1241.0 at the close, were the poorest performers of the session. Resona Holdings, Inc. (T:8308) dropped 3.72% or 22.6 points to end at 585.1 and DeNA Co Ltd (T:2432) declined 3.56% or 94.0 points to 2546.0.

Declining stocks outnumbered progressing ones on the Tokyo Stock Exchange by 1610 to 1352 and 354 ended unaffected.

Commodities trading in other places,  delivery of Brent oil in March increased 0.60% or 0.33 to hit $55.56 a barrel, although the February Gold agreement drops 0.11% or 1.35 to trade at $1214. 25 a troy ounce.

Crude oil delivery in March surges 0.51% or 0.27 to $53.02 a barrel.

USD/JPY increased 0.43% to 113.19, whereas EUR/JPY increased 0.18% to 121.56.

On Additional News

On Tuesday, the greenback was trading close to seven week lows compared to the basket of other major currencies,  as worries over President Donald Trump’s protectionist economic policies continued to affect.

The U.S. dollar index, which gauges the dollar’s strong point against a trade-weighted basket of six major currencies, increased  0.2% at 100.16, after declining to 99.88 overnight, its bottom since December 8.

After the close on Tuesday, Indonesia stocks increase, as gains in the Infrastructure, Trade and Consumer Industry sectors led shares higher.

At the close in Jakarta, the IDX Composite Index increases 0.78%.

For United Arab Emirates, after the close on Tuesday, stocks were higher, as gains in the Banking, Servies and Transport sectors led shares higher.

At the close in Dubai, the DFM General added added 0.34%, while the ADX General   index increased 0.47%.

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Gold Prices Increase to Two Month Peak as Greenback Falls on Trump Uncertainty

On Monday, gold prices increase suddenly during European early trade, hitting the strongest level in about two months as the U.S. greenback plunged during improbability around the economic policies of new U.S. President Donald Trump.

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On Monday, gold prices increase suddenly during European early trade, hitting the strongest level in about two months as the U.S. greenback plunged during improbability around the economic policies of new U.S. President Donald Trump.

Delivery of gold for February on the Comex division of the NYMEX affected a session peak of $1,219.40 a troy ounce, a level not perceived since November 22.

It was previously at $1,214.50 by 3:10AM ET (08:10GMT), increased nearly $10.00, or 0.8%.

The dollar sold off after President Trump struck a protectionist statement in his inauguration speech on Friday, disappointing investors who expected to hear additional information on his promises of tax reductions and other stimulus. After  this protectionist statement, the greenback  prolonged losses on Monday.

During his inauguration address Friday, Trump promised to put “America first.” He indicated that he would abandon the Trans-Pacific Partnership and renegotiate NAFTA.

The dollar index declined 0.54% at 100.23. It was off 1.12% at 113.35  yen at 02:30 ET.

Sterling traded beyond $1.24. U.K. Prime Minister  Theresa May is due to meet Trump Friday in Washington.

The  euro  firmed to a six-week peak of over $1.07.

Later on Monday, European Central Bank President  Mario Draghi is due to speak .

Investors will return to the business of observing economic data for fresh indications on the health of the economy in the week onward,  with Friday’s advanced reading for U.S. development in the limelight.

Last month, the Fed Reserve signaled  that at least three rate increases were in the near future  for 2017. According to a prediction of interest rates from members of the central bank, identified as the dot-plot.

However, traders stayed  skeptical. Instead, markets are expecting  just two rate hikes during the course of this year, according to the reports.

Any delay in raising interest rates would be perceived as positive for gold and negative for the greenback.

Also on the Comex, delivery of silver futures for March add on on 11.0 cents, or approximately 0.7%, at $17.14 a troy ounce during early hours in London.

In the meantime, platinum increased 1% to $985.75, while  palladium added 0.4% to $791.40 an ounce, the strongest level since May 2015.

In another place in metals trading, copper futures increased 2.0 cents, or approximately 0.8%, to $2.645 a pound.

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USD Plummets over Yellen remarks

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The dollar plunged against the other major currencies, after getting a boost from remarks by Fed Reserve Chair Janet Yellen, who specified that the U.S. central bank is ready for a rapid pace of rate hikes this year.

On Tuesday the dollar became unstable while sterling increased more than 3% since 1998, marking its best performance as the  currency markets inverted most of the previous day’s changes.

On the following day, the greenback rallied as forex traders put back their confidence on the USD after five straight days of selling  which placed its value against a basket of major currencies at the bottom in over a month.  The U.S. dollar prolonged its strong point in late afternoon trade after Fed Reserve Chairwoman Janet Yellen stated the central bank anticipates a few rate hikes a year until the end of 2019.

Speaking in San Francisco overnight, Yellen stated that waiting too long to start increasing rates could “risk a nasty surprise down the road.”

The U.S. dollar index, which gauges the greenback’s strong point against a trade-weighted basket of six major currencies, eased 0.14% to 101.17, moving away from overnight peaks of 101.4.

The rate increased in December mirrored confidence the U.S. economy will continue to improve, Yellen said.

On Wednesday, positive data on U.S. consumer prices and industrial output  also fed into anticipations for additional rate hikes this year.

On Additional News

The euro pressed higher against the greenback, with EUR/USD advancing 0.21% to 1.0651 prior to the European Central Bank’s policy meeting later in the day at which no changes were anticipated.

Compared to the dollar, the euro ended Wednesday’s session down 0.77 percent.

The dollar changed a little against the yen, with USD/JPY at 114.70, after jumping 1.8% on Wednesday.

Sterling inched higher, with GBP/USD increases 0.47% to 1.2314 as investors continued to measure the U.K. government’s strategies for a clean break from the EU.

So many other things revolve around on what is going to happen to the dollar this year. It will rest on what happens to return on invested capital. Whether the U.S. dollar increases or declines will be the main motivator of performance for almost any asset class in 2017.

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Dollar Regains, Sterling Declines as Yellen Speech Expected

After U.S. President-elect Donald Trump stated that the strong dollar was hurting U.S. competitiveness, the dollar decline by 0.6% against a basket of currencies.

Gold Strengthen As Dollar Weakens

After  U.S. President-elect Donald Trump stated that the strong dollar was hurting U.S. competitiveness, the dollar decline by 0.6% against a basket of currencies.

In an interview on Monday Trump stated U.S. companies could not compete with China “because our currency is too strong. And it’s killing us”.

In separate statements, a senior adviser to the U.S. President-elect advised about the threat from a stronger dollar.

However, on Wednesday, as investors expected a speech from Fed Reserve Chair Janet Yellen, the greenback made progress, dragging away from seven week low, although the sterling’s decline, giving back some of the prior session strong improvements.

On Tuesday, Sterling rallied after British Prime Minister Theresa May’s Brexit speech, although the U.S. dollar dropped as investors processed remarks by President-elect Donald Trump.

Previously, Sterling had also received an increase after statistics indicating that U.K. inflation hit the highest since mid-2014 in December.

The U.S. dollar index, which gauges the greenback’s strong point compared to a trade-weighted basket of six major currencies, increase 0.25% to 100.52, moved backward  from Tuesday’s lows of 100.47, the sluggish since December 8.

Compared to the yen, the greenback was higher, with  USD/JPY up 0.51% to 113.17, after declining  to a seven-week low of 112.58.

On Tuesday, San Francisco Fed President John Williams called for slow U.S. interest rate hikes within the next few years.

Investors were looking forward to a speech by the Fed chief  in San Francisco later on Wednesday, which could propose fresh signals on the direction of monetary policy.

On Tuesday, Fed Governor Lael Brainard stated, the Fed might increase rates more forcefully  if deficit expenditure under the Trump administration fueled inflation.

GBP/USD increased 2.66% to 1.2369, recovering from the low of 1.1985 hit on Monday, which was the weakest level since October’s flash crash, after reports said that Prime Minister Theresa May will indicate plans to quit the European Union’s single market to reclaim control of Britain’s borders and laws. It has been the biggest one day increase in the pair since January of 2009, throughout the global financial crisis.

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