Dollar Hovering Near 2-Week Highs, Sterling Edges Up By Investing.com


© Reuters.

Investing.com – The U.S. dollar was hovering near two-week highs against a currency basket on Monday as U.S. Treasury yields bounced back from recent lows amid hopes that major economies will seek to prop up slowing growth with fresh stimulus.

The , against a basket of six major currencies was at 98.05 by 03:01 AM ET (07:01 GMT), not far from the two-week high of 98.20 reached on Friday.

The stood at 1.57%, having pulled away from a three-year trough of 1.47% marked last week in the wake of global slowdown fears.

Falling yields last week caused the two-year/10-year Treasury curve to invert for the first since 2007, a phenomenon widely regarded as a recession signal that puts the Federal Reserve interest rate deliberations into focus.

“This week’s main event is the Jackson Hole symposium and Fed Chairman (Jerome) Powell’s speech,” said Junichi Ishikawa, senior FX strategist at IG Securities in Tokyo.

Powell will deliver a speech on Friday at an annual meeting of central bankers in Jackson Hole, Wyoming.

“What Powell has to say is in focus as the discrepancy remains between what he said on interest rates and what the markets have come to expect the Fed will do,” Ishikawa said.

Powell said after the Fed lowered rates in July that the easing was not the start of a series of cuts. But market expectations for the Fed to cut rates by another 25 basis points at the next policy meeting in September have increased.

The was steady at 1.1092 while the edged up 0.15% to 1.2166.

The dollar was little changed against the at 106.37.

The was slightly lower after U.S. President Donald Trump said he was not ready yet to make a trade with China.

Traders were also cautious ahead of the debut of China’s new benchmark lending rate on Tuesday, which was announced at the weekend.

The People’s Bank of China on Saturday unveiled interest rate reforms to help lower borrowing costs for companies and support slowing growth, which has been hit by the trade war with the U.S.

–Reuters contributed to this report

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





Source link

Dollar Hovering Near 2-Month Lows on Fed Rate View By Investing.com


© Reuters.

Investing.com – The U.S. dollar was trading near two-month lows against a currency basket on Wednesday, as expectations that the Federal Reserve could cut interest rates in the coming months in response to fallout from global trade tensions pressured the currency.

The versus a basket of six major currencies was flat at 96.698 03:14 AM ET (07:14 GMT), not far from the 96.459 level it hit on Monday, its lowest since April 12.

The greenback has been pressured lower by a sharp decline in long-term U.S. Treasury yields, which fell to near two-year lows on Friday after a soft U.S. jobs report raised expectations for an interest rate cut by the Fed.

Investor focus is now on the Fed’s next policy meeting on June 18-19 and what kind of signals the central bank could offer on the direction of monetary policy.

“The market has priced in a rate cut by the Fed to a significant degree,” said Shinichiro Kadota, senior strategist at Barclays in Tokyo.

“So the market is waiting for next week’s Fed meeting as a chance to see by how much and for how long it is ready to ease policy.”

Expectations for a central bank rate cut this year rose last week after a number of Fed officials, including Chairman Jerome Powell, hinted they were open to easing monetary policy.

The was steady at 1.1332, within striking distance of a three-month peak of 1.1348 scaled on Friday.

The single currency was little affected by U.S. President Donald Trump’s accusation that Europe was devaluing the euro, which has gained roughly 1.4% against the dollar so far in June.

“The Euro and other currencies are devalued against the dollar, putting the U.S. at a big disadvantage,” Trump tweeted on Tuesday without offering any evidence.

The dollar was slightly lower against the at 108.34. The greenback has pulled back from a five-month low of 107.810 plumbed a week ago when risk aversion in the broader markets heightened demand for the safe-haven yen.

–Reuters contributed to this report

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





Source link

Dollar Hovering Near 7-Week Lows on Fed Rate View By Investing.com


© Reuters.

Investing.com – The U.S. dollar was hovering near seven-week lows against a currency basket on Wednesday amid growing expectations for a Federal Reserve rate cut in the face of increasing headwinds to the economy caused by trade conflicts.

Fed Chairman Jerome Powell on Tuesday pledged that the central bank will “act as appropriate” to protect the economy from the disruption caused by trade wars, dropping his standard reference to being “patient” in approaching any interest rate decision.

The against a basket of six peers was little changed at 97.000 by 03:53 AM ET (07:53 GMT), within reach of an overnight low of 96.887, its weakest since April 18. The index has now fallen 1.3% from a more than two-year high of 98.371 touched on May 23.

Masafumi Yamamoto, chief currency strategist at Mizuho Securities, said major currencies barely reacted to Powell’s comments as investors had already priced in several rate cuts by the Fed on the back of the shifting global growth outlook.

The Fed chairman’s comments came a day after St. Louis Federal Reserve President James Bullard said in a speech that a rate cut may be needed “soon.”
Rate cuts by some central banks in recent weeks could potentially signal the start of a global monetary easing cycle to stave off a sharper economic downturn.

“Central banks across the globe are adopting a dovish tone. It’s kind of a preemptive move,” said Yamamoto.

“It doesn’t necessarily mean that the economy is worsening – rather the outlook worsened. It’s mainly related to the trade tensions between the U.S. and China and the U.S. and Mexico.”

Australia’s central bank on Tuesday slashed benchmark cash rates to a record low of 1.25% and signaled willingness to go further if worsening outlook persists.

Last month, New Zealand’s central bank cut its benchmark interest rate for the first time in two-and-a-half years as it moved to support a cooling economy and counter global uncertainties.

In South Korea, its central bank last week kept policy settings unchanged but adopted a more accommodative tone while India is expected to cut rates at its policy meeting on Thursday.

On Wednesday, the was up 0.16% to 0.6999 despite data showing that the country’s economy grew at the slowest pace in a decade in the first quarter, underlining the need for aggressive monetary and fiscal stimulus.

The was up 0.14% at 1.1265, extending its gains to a fourth session.

Against the , the dollar edged higher to 108.23 yen per dollar, within striking distance of a near five-month high of 107.845 – its highest since Jan. 10 – hit during the previous session.

–Reuters contributed to this report

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





Source link