FOREX-Dollar discovers downsides of global growth, twin deficits - Investing.com India
FOREX-Dollar discovers downsides of global growth, twin deficits - Investing.com India |
- FOREX-Dollar discovers downsides of global growth, twin deficits - Investing.com India
- FOREX-U.S. dollar rises, trades in ranges, ahead of Fed decision - Investing.com India
- Market Extra: Top forecaster Yves Lamoureux surveys the current investing landscape — from stocks to cryptos — and sees just 2 ways to go - ForexTV.com
| FOREX-Dollar discovers downsides of global growth, twin deficits - Investing.com India Posted: 28 Apr 2021 08:21 PM PDT  * Fed's Powell quashes tapering talk, Biden touts spending * Euro breaks to nine-week peak, CAD to 3-year high * U.S. GDP set to be strong, trade and budget deficits a drag By Wayne Cole SYDNEY, April 29 (Reuters) - The dollar slid to nine-week lows on Thursday as a doggedly dovish outlook from the U.S. Federal Reserve and bold spending plans from the White House gave a green light for the global reflation trade. President Joe Biden's push for another $1.8 trillion in spending also risked blowing out the U.S. budget and trade deficits. The twin deficits have long been an Achilles heel for the dollar. euro made the most of the opportunity to hit its highest since late February at $1.2148 , after cracking trendline resistance around $1.2114. The break now opens the way to bull targets at $1.2196 and $1.2242. Fed Chair Jerome Powell did the dollar no favours by quashing speculation about an early tapering of asset buying, saying employment was still far short of target. risk is the Fed is very cautious and delays taking the first steps to normalising policy," said Joseph Capurso, head of international economics at CBA. "Low interest rates amid an improving U.S. and global economy is a recipe for the dollar to continue decreasing." Even the outperformance of the U.S. economy had a sting in the tail for the dollar as it sucked in imports and drove the trade deficit to record highs in March. surge implies the U.S. current account deficit was around 4% of GDP in Q1, a significant weight on the USD in the medium term," said Capurso. It could also temper any reaction to an upbeat U.S. GDP report for the first quarter due later on Thursday, where market forecasts are for annualised growth of a whopping 6.1%. The closely-watched Atlanta Fed's "GDP Now" estimate is that GDP expanded by 7.9%, suggesting considerable upside risk. The Fed's dovishness was in marked contrast to the Bank of Canada which has already begun to taper its asset buying, sending the dollar sliding to a three-year trough on the loonie at C$1.2287 . Another notable break lower came against the Norwegian crown, where the dollar hit its lowest since October 2018 at 8.1460 crowns . The crown has been carried higher by rising oil prices as the global economic recovery boosts demand for commodities, a trend that is also benefiting the Australian AUD=D3 and New Zealand dollars NZD=D3 . The dollar also shed much of the week's gain on the yen, falling back to 108.55 from Wednesday's top of 109.07. A holiday in Japan was keeping it contained in Asian hours. Against a basket of currencies, the dollar was down at a near nine-week low of 90.443 , and a long way from the rally peak of 93.439 hit at the end of March.  |
| FOREX-U.S. dollar rises, trades in ranges, ahead of Fed decision - Investing.com India Posted: 28 Apr 2021 07:25 AM PDT  * Fed seen sticking to dovish stance * Dollar/yen keeps gains * Graphic: World FX rates https://tmsnrt.rs/2RBWI5E (Adds new comment, FX table, updates prices, changes byline, dateline previous LONDON) By Gertrude Chavez-Dreyfuss NEW YORK, April 28 (Reuters) - The U.S. dollar edged higher on Wednesday, moving within narrow ranges, ahead of a U.S. Federal Reserve policy statement and a speech by President Joe Biden later in the day when the U.S. president is set to announce more stimulus plans. Though the greenback recovered from a one-month low hit earlier this week, investors expect the U.S. central bank to maintain its policy settings and Fed Chairman Jerome Powell is seen as likely to repeat his dovish message. prices are starting to go up and the price of anything in the production and supply chain is also starting to go up. There's certainly a level of inflation there," said Juan Perez, FX strategist and trader, at Tempus Inc. "But I expect Powell to repeat what he has always said that price increases are expected especially after what we have gone through during the pandemic. But unless we hit full employment, the Fed will stay put," he added. While currency markets were generally calm, signs of nervousness were evident in the bond markets where yields on 10-year U.S. Treasury notes rose above 1.60% after tepid auction results. US/ U.S. yields on Wednesday ahead of the Fed were little changed, with those on the benchmark 10-year note at 1.627% . With the consensus broadly that the Fed will remain on hold, any small shift in rhetoric could trigger an outsized move in markets. In mid-morning trading, the rose 0.1% at 90.953 =USD , bouncing from Monday's low of 90.679, its weakest level since March 3, though investors were not convinced a recent downtrend had ended. "The Fed has been fighting a rearguard action against calls for higher rates in the face of extremely strong data and the prospects of more stimulus, and most likely they will keep the same phrasing as before," said John Marley, CEO of forexxtra, a London-based FX consultancy. Investors' inflation expectations, measured by the break-even inflation rate calculated from U.S. inflation-linked bonds US10YTIP=TWEB , rose above 2.40% on Wednesday, the highest level since 2013. The euro slipped 0.1% to $1.2074 , off Monday's two-month high of $1.2117. The dollar stood at 108.97 yen , up 0.1% on the day, having jumped 0.59% overnight and extending its recovery from a seven-week low of 107.48 touched last week, in tandem with rises in U.S. bond yields. Biden is expected to roll out a plan to raise taxes on the wealthiest Americans, including the largest-ever increase in levies on investment gains, in order to fund about $1 trillion in childcare and other social spending. the Australian dollar AUD=D4 dropped 0.1% to US$0.7759 after the country's consumer price index came in weaker than expected. bid prices at 10:10AM (1410 GMT) Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid Previous Change Session Dollar index =USD 90.9040 90.8970 +0.02% 1.026% +91.1270 +90.8970 Euro/Dollar EUR=EBS $1.2081 $1.2093 -0.10% -1.12% +$1.2093 +$1.2056 Dollar/Yen JPY=EBS 108.8000 108.7300 +0.07% +5.31% +109.0750 +108.6850 Euro/Yen EURJPY= 131.45 131.48 -0.02% +3.57% +131.6600 +131.4000 Dollar/Swiss CHF=EBS 0.9136 0.9137 -0.01% +3.27% +0.9181 +0.9137 Sterling/Dollar GBP=D3 $1.3898 $1.3910 -0.08% +1.73% +$1.3909 +$1.3863 Dollar/Canadian CAD=D3 1.2377 1.2402 -0.20% -2.80% +1.2418 +1.2377 Aussie/Dollar AUD=D3 $0.7761 $0.7768 -0.07% +0.90% +$0.7770 +$0.7726 Euro/Swiss EURCHF= 1.1035 1.1045 -0.09% +2.11% +1.1075 +1.1037 Euro/Sterling EURGBP= 0.8691 0.8686 +0.06% -2.75% +0.8707 +0.8686 NZ NZD=D3 $0.7234 $0.7209 +0.37% +0.75% +$0.7234 +$0.7189 Dollar/Dollar Dollar/Norway NOK=D3 8.2405 8.2790 -0.43% -4.01% +8.2965 +8.2400 Euro/Norway EURNOK= 9.9570 10.0007 -0.44% -4.87% +10.0255 +9.9496 Dollar/Sweden 8.3653 8.3743 -0.13% +2.06% +8.3980 +8.3676 Euro/Sweden EURSEK= 10.1044 10.1180 -0.13% +0.28% +10.1340 +10.1060 <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ World FX rates https://tmsnrt.rs/2RBWI5E ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>  |
| Posted: 28 Apr 2021 01:16 PM PDT Yves Lamoureux has made some prescient market calls. He's got a few more on offer, including a six-month window to make some money on certain assets.  Latest posts by Market Watch (see all)  |
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