Market

U.S. Dollar Weighed Down By Yields | Investing.com

US dollar broadly lower

The US dollar eased on Friday after the rise in US yields post-data quickly ran out of steam, with the US finishing near unchanged around 1.55%. That left the 0.49% lower at 90.83, easing further in Asia to 90.70. Most of the fall can be attributed to the euro, which rallied powerfully by 0.68% to 1.2095 after robust PMI data alleviated slow-down fears. closed above its 100-day moving average (DMA) for the week, a bullish technical development. On a slow news day, EUR/USD looks set to rest at 1.2150 in the European session.

The reappraisal of the previously dismal European outlook has capped any sterling gains versus the greenback. buying has capped at 1.3910 even as EUR/GBP has rallied to 0.8715, just shy of resistance at 0.8720. Sterling will struggle against both as the market unwinds weeks of negative European positioning.

Both the and dollars have added nearly one per cent over the past two trading sessions. As risk barometers, both are clearly signalling market sentiment at the moment and look set to test resistance at 0.7800 and 0.7230, respectively, shortly.

The Indian rupee has found some respite over the past few sessions, with falling back below 75.00. The market appears to be pricing India will move past the present Covid-19 situation, and the rupee is benefiting from a general risk-positive attitude to Asian currencies in general. USD/INR is set to fall again today after preliminary data suggests that Mumbai and New Delhi cases could be peaking, even if the situation remains dire elsewhere.

Across Asia in general, regional currencies have rallied, with the and at one-month highs. Only the and are lagging. The Thai baht is because of Thailand’s Covid-19 outbreak. The rupiah is lower as markets remain concerned that the Bank of Indonesia’s last cut may have been one too far, leaving it vulnerable to rising US yields.

Ahead of an acceleration in the global data calendar and heavyweight US earnings releases this week, the US dollar will remain on the back foot throughout today as US yields remain benignly becalmed, allowing risk sentiment to flourish.

Original Post

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.



Most Related Links :
newsbinding Governmental News Finance News

Source link

Back to top button