Dollar lower after Powell, crypto climbs as investors eye Trump win
Updated at 3:13 p.m. ET/ 1913 GMT
By Chuck Mikolajczak
NEW YORK, July 15 (Reuters) -The dollar fell slightlyon Monday after comments from Federal Reserve Chair Jerome Powell, while cryptocurrencies rose on bets that an assassination attempt on former President Donald Trump lifted hisreelection chances.
Trump has presented himself as a staunch supporter for cryptocurrencies, although he has not offered specifics on his proposed crypto policy.
In the aftermath of the shooting, investors narrowed the odds of a Trump victory. Online betting site PredictIt showed bets of an election win for Trump at 67 cents, up from Friday's 60 cents, with Joe Biden at 27 cents.
The dollar tends to strengthen as part of what is known as the "Trump trade" of assets likely to perform well under a Trump presidency of a hawkish trade policy and looser regulation for certain industries.
But the initial reaction proved to be short-lived, with the greenback falling from its earlier highs.
The dollar also briefly fell sharply as Powell began his speech.He said the three U.S. inflation readings over the second quarter "add somewhat to confidence" that the pace of price increases is returning to the Fed's target in a sustainable fashion, indicating a move to cut interest rates may be coming soon.
"The market is feeling confident and they were feeling confident before (Powell) spoke about a September rate cut, so I don't think he really put it on the table, but it's clearly that it is on the table," said Marc Chandler, chief market strategist at Bannockburn Global Forex in New York.
"Powell could have made a stronger case that we've achieved a soft landing and now let's avoid a hard landing. That's the kind of logic that is going to be unfolding now."
The dollar index =USD, which measures the greenback against a basket of currencies, fell 0.07% to 104.22 after rising as high as 104.31, with the euro EUR= down 0.09% at $1.0897. Sterling GBP= weakened 0.22% to $1.2964.
Markets are completely pricingin a rate cut of at least 25 basis points (bps) from the Fed in September, according to CME's FedWatch Tool, after data last week showed consumer prices fell on a monthly basis for the first time in four years in June.
Crypto prices jumped, with bitcoin BTC= last up more than 6% at $63,808 after reaching a three-week high of $63,838.86. Ether ETH= surged more than 7% to $3,417.20.
Against the Japanese yen JPY=, the dollar was unchanged at157.89. The greenback fell to 157.15 as Powell spoke, its lowest since June 17, before quickly rebounding.
TheBank of Japan (BoJ) is thought to have intervened in the market in another effort to buttress the Japanese currency last week after the cooler-than-expected U.S. inflation report. Data from the central bank suggests that authorities may have spent up to 3.57 trillion yen ($22.4 billion) to do so on Thursday.
"Anything that's going to give the Bank of Japan hope that the Fed might cut rates more or sooner than previously expected is going to give the yen a boost," said Helen Given, FX trader, at Monex USA in Washington. "It's all about interest rate differentials, so movement in Fed futures is going to sway yen a lot."
World FX rates https://tmsnrt.rs/2RBWI5E
Reporting by Chuck Mikolajczak, additional reporting by Gertrude Chavez-Dreyfuss; Editing by Sharon Singleton and Richard Chang
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.
