[email protected]
+44 7862 068336
Open Live Account Open Demo Account Client Login Partners Login Download MT4 Contact Us
cfm-footer-logo-whitecfm-footer-logo-whitecfm-footer-logo-whitecfm-footer-logo-white
  • About Us
    • CF Merchants
    • Why Choose Us
    • Registering Bodies
    • Security of Funds
    • Legal Documents
  • Trading
    • Products
      • Forex
      • Commodities
      • CFDs
      • INDICES
      • Cryptocurrencies
    • Platform
      • META TRADER 4
    • Pricing
      • Product Knowledge
      • Trading Hours
      • Execution Policy
      • Expiration of CFD’s
  • Accounts
    • Accounts Comparison
    • Islamic Accounts
    • Deposit & Withdrawals
  • Research & Education
    • CFM Academy
      • What is Forex?
      • E-Book
      • Forex Glossary
    • News
      • Forex News
      • Crypto News
      • Education News
    • Market
      • Economic Calendar
      • Market Analysis
  • Promotions
    • 50% Deposit Bonus
  • Partnership
  • Contact Us
✕
  • Home
  • Market Analysis
  • Dollar sets four-week low as Fed’s dovish message takes hold
Dollar rises from near three-week low as traders brace for inflation data
April 13, 2021
Dollar pinned near one-month low amid subdued U.S. yields
April 19, 2021
Published by CF Merchants on April 15, 2021
Categories
  • Market Analysis
Tags

TOKYO (Reuters) – The U.S. dollar sank to a new four-week low versus major peers on Thursday as Treasury yields pulled back from last month’s surge, with investors increasingly convinced by the Federal Reserve’s arguments that interest rates will stay low for some time.

The dollar index, which tracks the greenback against six rival currencies, dipped to the lowest since March 18 at 91.559 in the Asian session before recovering to be basically flat at 91.666.

The euro rose as high as a four-week top of $1.1989, matching the highest level since March 4, before trading mostly unchanged at $1.19735.

The dollar changed hands at 108.87 yen, after hitting a three-week low of 108.755 on Wednesday.

“The dollar has been losing steam a bit in line with falls in U.S. bond yields as the Fed has maintained its dovish stance,” said Yujiro Goto, chief currency strategist at Nomura Securities.

Repeated assurances from Fed officials that it will keep interest rates low have helped stabilise U.S. bonds, especially at the short end of the market.

While many investors remain nervous the Fed could change its tone later this year if inflation readings swing much higher than expected, for now they are content to give the Fed the benefit of the doubt.

Ten-year U.S. bond yields eased to 1.6342% in Asian trading, well below a 14-month peak of 1.776% hit late March, reducing the dollar’s yield attraction.

Meanwhile, stocks have marched higher, with the S&P 500 setting new records this week.

“Risk sentiment is improving,” dragging on bond yields and the dollar, said Osamu Takashima, chief currency strategist at Citigroup (NYSE:C) Global Markets Japan.

“I believe the dollar weakening trend could continue,” with a move toward 108 yen and $1.205 per euro in the very near term, he said.

Fed Chair Jerome Powell said on Wednesday that in time the U.S. central bank will reduce its monthly bond purchases before it commits to an interest rate increase, a scenario many investors have regarded as a given.

A weaker U.S. dollar also saw commodity currencies supported. The Australian dollar rose at high as $0.7745 on Thursday for the first time since March 23, following a 1% rally in the previous session that saw it break out of its tight trading band over the last few weeks.

The New Zealand dollar likewise hit a three-week high of $0.7160.

“When economic data is strong and the Fed is not turning hawkish, we could see risk-sensitive currencies gaining against both the dollar and the yen,” said Nomura’s Goto.

Thursday is busy with U.S. data, including retail sales readings for March and weekly jobless figures due at 1230GMT.

Bitcoin stood near the record high of $64,895.22 hit on Wednesday, when cryptocurrency platform Coinbase made its debut in Nasdaq in direct listing. The world’s most popular digital token last changed hands at around $63,250.

After a volatile trade, the stock closed at $328.28, which gave the firm market capitalization of $65.39 billion, about the same as New York Stock Exchange owner Intercontinental Exchange (NYSE:ICE) Inc. By investing.com

Share
0
CF Merchants
CF Merchants

Related posts

May 7, 2021

Dollar under pressure as U.S. payrolls data could spur more risk-taking


Read more
May 6, 2021

Dollar holds near two-week high, U.S. jobs data eyed for Fed clues


Read more
May 5, 2021

Asia Shares Subdued By Tech Retreat, U.s. Futures Steady


Read more

Leave a Reply Cancel reply

You must be logged in to post a comment.

[email protected]
[email protected]
+44 7862 068336

    Legal: CF Merchants is the trading name of Commodity and Forex Merchants registered and regulated in many Jurisdictions. CF Merchants Limited is regulated with license number 24535/2018, at Suite 305, Griffith Corporate Center, P. O. Box 1510, Beachmont, Kingstown, Saint Vincent and the Grenadines as an International Broker Company under the company act of Saint Vincent & the Grenadines. The objects of the Company are all subject matters not forbidden by International Business Companies (Amendments and Consolidation) Act, Chapter 149 of the Revised Laws of Saint Vincent and Grenadines 2009, in particular but not exclusively all commercial, financial, lending, borrowing, trading, service activities and the participation in other enterprises as well to provide brokerage, training and managed account services in currencies, commodities, indexes and leveraged financial instruments.
    Commodity and Forex Merchants Limited is authorized under license number 1092420 by the Companies House, Cardiff, United Kingdom on 21st August 2017.

    High Risk Investment Warning: Margin FX are leveraged products that carry an extraordinary level of risk to your funds. Trading is not suitable for everyone and may result in you losing significantly more than your investments and therefore, you should not speculate with capital that you cannot afford to lose. You should consider whether you understand how this work and whether you can afford to take the high risk of losing your money. All the trading related information on this website is general in nature and does not take into account your or your client’s personal intentions, financial conditions and needs. We encourage you to seek independent advice if necessary. It is the responsibility of the client to ascertain whether he/she is allowed to use the services of the CF Merchants based on the legal requirements in his/her country of residence. Please read full Risk Disclaimer for more details.

    Regional Restrictions: CF Merchants (SV) Ltd does not provide services and accept applications from the residents of certain countries, such as United States of America, Canada, Israel, North Korea and Saint Vincent & The Grenadines. The statistics on this website is not directed at residents in any country or jurisdiction where such distribution or use would be contradictory to local law or regulation.

    © 2011-2020 CF Merchants Ltd.

    • Terms & Conditions
    • Privacy Policy
    • Fraud Warning
    • Risk Disclosure
    • AML Policy
    • Client Agreement
    • IB Agreement
    • Power of Attorney