image

Dollar Stabilises Near Recent Peaks as Traders Await Fed

It bought 110.18 yen and the Australian and New Zealand dollars held onto small gains made Monday.

The greenback has been rising broadly for more than a month as markets have become wary of the Fed starting to taper its monetary support. Investors turned long dollars for the first time since March 2020 last week, positioning data shows.

The Fed meeting is on Wednesday and the focus is on discussions around bond purchases and insight into the bank’s comfort with surging inflation, with the upshot for currency markets not clear cut.

Commonwealth Bank of Australia strategist Joe Capurso said a hint that tapering could soon begin would lift the dollar.

Steve Englander, head of G10 FX research at Standard Chartered, however, said that a steer on the Fed’s thinking about a sharp but likely transitory jump in inflation will be just as important.

“We expect that Fed Chair (Jerome) Powell will convey more patience than many recent Fed speakers about bringing inflation lower, as long as domestic economic conditions still point to labour market slack,” said Englander in a note to clients.

“A dovish lean by Powell will likely push up longer-term interest rates … because of a rally in inflation breakevens and a reduction in market fears about slower medium-term growth.

“Paradoxically, this is likely to be dollar-negative because global uncertainty on the policy response to higher inflation would be reduced,” said Englander.

A tick higher in inflation expectations on Monday pushed U.S. 10-year real yields to a record low of -1.123%, which also contributed to overnight softness in the dollar.

The U.S. dollar index fell 0.3% on Monday and was last steady at 92.600.

Elsewhere, concern at the spread of the Delta coronavirus variant and jitters in China’s stock market kept trade cautious during Asia hours. The risk-sensitive Australian dollar was steady at $0.7382 and the kiwi held around $0.7000.

Sterling was above its 20-day moving average and near a one-week high at $1.3827 as early data seemed to show an ebb in surging COVID-19 cases in Britain in spite of the removal of many social curbs last week.

The Chinese yuan has held up despite turmoil in equities and was steady at 6.4760.

Bitcoin dropped sharply to $37,000 from a Monday peak above $40,000 after Amazon.com offered a qualified denial of a weekend news report that said it was preparing to accept cryptocurrencies.

“Speculation that has ensued around our specific plans for cryptocurrencies is not true,” said a company spokesperson.

“We remain focused on exploring what this could look like for customers shopping on Amazon.”

(Reporting by Tom Westbrook; Editing by Ana Nicolaci da Costa)


Source link

0 0 votes
Article Rating

S’abonner
Notifier de
0 Commentaires
Commentaires en ligne
Afficher tous les commentaires
Reset Password

Avertissement sur les risques :

Le trading peut vous exposer à des risques de pertes supérieures aux dépôts et ne convient qu’à une clientèle avisée ayant les moyens financiers de supporter un tel risque. Les CFD sont des instruments complexes et présentent un risque élevé de perte rapide en capital en raison de l’effet de levier. Entre 74 et 89% des comptes de clients de détail perdent de l’argent lors de la négociation de CFD. Vous devez vous assurer que vous comprenez comment les CFD fonctionnent et que vous pouvez vous permettre de prendre le risque élevé de perdre votre argent. Ce site n’est en aucun cas une offre de conseil en investissement ni une incitation quelconque à acheter ou vendre des instruments financiers. Trader le Forex et/ou les CFD’s implique un niveau de risque élevé, et peut ne pas être approprié car vous pouvez subir des pertes supérieures à votre dépôt. L’effet de levier peut être en votre défaveur.

Vous devez être conscient et avoir une compréhension complète de tous les risques associés au marché et au trading. Le site Union-trader.com peut être amené à produire des commentaires d’ordre général, ce qui ne constitue pas des conseils en investissement et ne doit pas être interprété comme tel.

Veuillez recourir aux conseils d’un conseiller financier extérieur. Le site Union-trader.com décline toute responsabilité pour les erreurs, inexactitudes ou omissions et ne garantit pas l’exactitude ou le caractère complet des informations, textes, graphiques, liens ou autres éléments contenus dans cette documentation. Toute information et toute mise à disposition sur le site ont un caractère privé.