USD Outlook – Risk Appetite vs. Fed Taper Plans
By Kathy Lien Stronger than expected earnings drove the Dow Jones Industrial Average to record highs. Despite Delta variant fears, rising prices and supply chain shortage, bulge bracket U.S. companies are thriving. More than 85% of S&P 500 companies that reported as of Tuesday beat expectations in the third quarter. Results like these…
FX: Watch UK and CA Rate Hike Bets
By Kathy Lien U.S. stocks extended their gains on Tuesday and the improvement in risk appetite drove investors out of safe haven currencies into riskier ones which explains why the U.S. dollar ended the day lower against all of the major currencies despite renewed gains in Treasury yields. Ten year rates are at…
Dollar softens amid bets other central banks to outpace Fed tightening
By Kevin Buckland TOKYO (Reuters) – The dollar languished near the bottom of its recent range against major peers on Tuesday, knocked back by weak U.S. factory data overnight and on market wagers of faster normalisation of monetary policy in other countries. The dollar index, which measures the greenback against six peers, weakened…
Dollar wavering as global inflation surges; kiwi jumps
By Tom Westbrook SINGAPORE (Reuters) – The dollar made a wobbly start to the week on Monday with the kiwi and sterling edging higher after a red-hot inflation readout in New Zealand and hawkish remarks from Britain’s central bank chief that put rate rises in investors’ sights. The dollar index has now slipped…
Fed Officials Saw Taper Starting in Mid-November or Mid-December
By Craig Torres (Bloomberg) Federal Reserve officials broadly agreed last month they should start reducing emergency pandemic support for the economy in mid-November or mid-December amid increasing concern over inflation. “Participants generally assessed that, provided that the economic recovery remained broadly on track, a gradual tapering process that concluded around the middle of…
Dollar Edges Down From 13-Month High Ahead of CPI Data
By Geoffrey Smith Investing.com — The dollar weakened in early trade in Europe on Wednesday as markets regained their appetite for risk a little ahead of key inflation data later in the session. By 3 AM ET (0700 GMT), the dollar index that measures the greenback against a basket of advanced economy currencies…
FX: Busy Week Ahead, What to Expect
By Kathy Lien This will be another busy week for the foreign exchange market. Inflation and spending – two of the most important elements of Federal Reserve policy will be in focus. With USD/JPY climbing to its strongest level since December 2018, investors have largely shrugged off Friday’s soft non-farm payrolls report. However…
Asia shares up, rising yields lift dollar as oil surges
By Wayne Cole SYDNEY (Reuters) – Asian shares edged higher on Monday courtesy of gains in China which also helped U.S. stock futures pare early losses, while rising Treasury yields lifted the dollar to a near three-year peak against the Japanese yen. Brent oil prices extended their bull run to reach ground last…
Dollar firm as China Evergrande nerves resurface
By Tom Westbrook SINGAPORE (Reuters) – The dollar found support just below last week’s peaks on Monday as renewed concerns about China’s property sector and looming U.S. labour data put investors in a cautious mood. The greenback scaled a 14-month high on the euro and a 19-month top on the yen last week…
Dollar heads for best week in months as Fed tightening looms
By Tom Westbrook SINGAPORE (Reuters) – The dollar began the last quarter of 2021 near its highest levels of the year and headed for its best week since June, as currency markets braced for U.S. interest rates to rise before those of major peers. The euro slipped 0.1% early on Friday to $1.1572…
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