Dollar edges higher on yen after Tokyo's likely intervention last week
Updates prices at 1120 GMT
By Ankur Banerjee and Alun John
SINGAPORE/LONDON, July 16 (Reuters) -The dollar regained some lost ground on the Japanese yen on Tuesday even as traders remained waryof further intervention by Tokyo to prop up their currency after data showed they likely stepped into markets late last week.
The dollar was last up 0.3% on the yen at 158.44. It had been trading just shy of 162 yen last week before sudden falls, which took it to as low as 157.16 on Thursday. JPY=EBS
Bank of Japan data released on Tuesday suggested Tokyo may have spent 2.14 trillion yen ($13.5 billion) by stepping into the money market on Friday.
Combined with the estimated amount spent a day earlier, Japan is likely to have bought nearly 6 trillion yen via intervention last week.
Japanese authorities have made it standard practice to not confirm whether they have intervened, but Chief Cabinet Secretary Yoshimasa Hayashi said Japan stands ready to take all possible steps to counter excessively volatile currency moves.
Moves in Europe were fairly calm as traders were nervous about placing too big bets on sterling ahead of crucial British inflation data due on Wednesday and on theeuro, with a European Central Bank (ECB)meeting on Thursday.
The pound was last flat at $1.29685, having hit a near one-year high just shy of $1.3 a day earlier. GBP=D3
The euro too was little changed at $1.09003 EUR=EBS, just shy of a four-month high touched on Monday, having erased losses from the past few weeks when it came under pressure from uncertainty over theFrench election.
The ECBis expected to hold rates, but attention will be on comments from PresidentChristine Lagarde on timingof the next rate cut.
Markets are pricing in 48 basis points (bps) more cutsfrom the ECB this year, after it cut rates by 25 bps in June.
"The key development, I think, will be if Lagarde hints at the prospect of another cut coming at the September meeting," said Stuart Cole, chief economist at Equiti Capital.
He said though this was unlikely as "the ECB is looking for more signs that pricing pressures are abating before being confident enough to cut again".
"Of course, what does make it easier for the ECB to cut is the growing likelihood of the Fed cutting in September too."
On Monday, Federal Reserve chair JeromePowell said the second quarter's three U.S. inflation readings "add somewhat to confidence" that the pace of price increases is returning to the Fed's targetin a sustainable way.
The comments, likely Powell's last until his press conference after a Fed meeting set for July 30 and 31, shifted rate cut expectations.
Markets now anticipate 68 bps of easing this year, with a rate cut in September fully priced in, the CME FedWatch tool showed.
U.S. retail sales for June due later in the day could further guide expectations for the Fed. They are expected to show a decline of 0.3% month-on-month.
Elsewhere, the Australian dollar AUD=D3 was 0.26% lower at $0.6742, off a six-month high touched last week, and the Swiss franc was steady at 0.8956 per dollar and 0.9764 to the euro. EURCHF=EBS, EUR=EBS
Cryptocurrencies, along with shares of companies that could benefit from a Trump presidency, jumped on Monday after an assassination bid on the Republican candidate boosted expectations that he would win the November election.
Bitcoin BTC= and Ether ETH= eased slightly on Tuesday.
World FX rates https://tmsnrt.rs/2RBWI5E
Reporting by Alun John in London and Ankur Banerjee in Singapore; Editing by Clarence Fernandez, Ros Russell and Arun Koyyur
Actifs liés
Dernières actualités
Avertissement : Les entités de XM Group proposent à notre plateforme de trading en ligne un service d'exécution uniquement, autorisant une personne à consulter et/ou à utiliser le contenu disponible sur ou via le site internet, qui n'a pas pour but de modifier ou d'élargir cette situation. De tels accès et utilisation sont toujours soumis aux : (i) Conditions générales ; (ii) Avertissements sur les risques et (iii) Avertissement complet. Un tel contenu n'est par conséquent fourni que pour information générale. En particulier, sachez que les contenus de notre plateforme de trading en ligne ne sont ni une sollicitation ni une offre de participation à toute transaction sur les marchés financiers. Le trading sur les marchés financiers implique un niveau significatif de risques pour votre capital.
Tout le matériel publié dans notre Centre de trading en ligne est destiné à des fins de formation / d'information uniquement et ne contient pas – et ne doit pas être considéré comme contenant – des conseils et recommandations en matière de finance, de fiscalité des investissements ou de trading, ou un enregistrement de nos prix de trading ou une offre, une sollicitation, une transaction à propos de tout instrument financier ou bien des promotions financières non sollicitées à votre égard.
Tout contenu tiers, de même que le contenu préparé par XM, tels que les opinions, actualités, études, analyses, prix, autres informations ou liens vers des sites tiers contenus sur ce site internet sont fournis "tels quels", comme commentaires généraux sur le marché et ne constituent pas des conseils en investissement. Dans la mesure où tout contenu est considéré comme de la recherche en investissement, vous devez noter et accepter que le contenu n'a pas été conçu ni préparé conformément aux exigences légales visant à promouvoir l'indépendance de la recherche en investissement et, en tant que tel, il serait considéré comme une communication marketing selon les lois et réglementations applicables. Veuillez vous assurer que vous avez lu et compris notre Avis sur la recherche en investissement non indépendante et notre avertissement sur les risques concernant les informations susdites, qui peuvent consultés ici.
