US dollar advances after hawkish Fed comment, economic data
Fed's Bowman says open to raising rates if needed
Fed's Cook says appropriate to cut rates "at some point"
U.S. home prices rise in April
U.S. consumer confidence modestly pulls back in June
Bitcoin recovers from sharp losses on Monday
Adds new comment, Fed's Cook comments, graphic, updates prices
By Gertrude Chavez-Dreyfuss
NEW YORK, June 25 (Reuters) -The U.S. dollar rose on Tuesday, bolstered by hawkish comments from Federal Reserve officials as well as data showing a stable housing marketin the world's largest economy, both suggesting thatthe central bank will not be in a rush to kickstart its rate-cutting cycle.
The greenback firmed against the euro, yen, Swiss franc, and commodity currencies, such as the Australian and New Zealand dollars.
Fed Governor Michelle Bowman started the ball rolling for the dollar, repeating her view on Tuesday that holding the policy rate steady "for some time" will likely be enough to bring inflation under control. She also reiterated her willingness to raise borrowing costs if needed.
Fed Governor Lisa Cook, for her part, said it would be appropriate to cut interest rates"at some point" given significant progress on inflation and a gradual cooling of the labor market. She remained vague, however, about the timing of the easing.
"If you listen to the Fed speakers, they are very shy of making too much of the one weak report that we have had given that on the aggregate we still had stronger reports since the start of the year," said Jayati Bharadwaj, global FX strategist, at TD Securities in New York.
"They sound very non-committal and ... also very data-dependent, given the uncertainty around the inflation outlook that is higher in the U.S. than elsewhere around the world."
U.S. data was mixed on Tuesday, still allowing the dollar to hold its gains.
A report showedU.S. single-family home prices increased at a steady pace in April, rising 0.2% on the month after being unchanged in March. In the 12 months through April house prices increased 6.3% after advancing 6.7% in March. That pushed the dollar a little higher.
U.S. consumer confidence, however, slightly eased in June, with the index at 100.4 from a downwardly revised 101.3 in May, according to the Conference Board. The June number, however, was marginally higher than the market forecast of 100. The report didn't really hurt the dollar.
A LOT NEEDED TO SUSTAIN DOLLAR WEAKNESS
"The weakness in some of the previous data such as retail sales and jobless claims is not really enough to spark an FX rally or dollar weakness," said Thierry Wizman, global FX and rates strategist at Macquarie in New York.
"For dollar weakness to happen, we're going to have to see not just some soft data in the U.S., but also need to see the Fed accelerate its rate cuts. We're going to have to see a divergence in data that favors the rest of the world."
Investors are now looking to Friday's release of the U.S. personal consumption expenditures (PCE) price index - the Fed's preferred measure of inflation.
In afternoontrading, the dollar rose 0.1% against the yen to 159.68 yen JPY=EBS, clinging to a tight range. Fears of intervention from Japanese officials deterred traders from sharply selling the yen against the dollar and other currencies.
Traders remained wary of testing the 160 level that prompted a 9.79 trillion yen ($61.33 billion) currency intervention from Tokyo in late April and early May.
The latest decline in the yen has come on the back of the Bank of Japan's (BOJ) June policy meeting, where policymakers disappointed investors who were betting on an immediate reduction of the BOJ's massive bond purchases.
The euro slid 0.2%versus the dollar to $1.0714 EUR=EBS. It has come under pressure amid political turmoil in France in the wake of President Emmanuel Macron's shock snap election call earlier this month.
Against a basket of currencies, the dollar index was up 0.1%at 105.72 =USD.
Sterling GBP=D3 was slightly higheragainst the dollar at $1.2693, while the Australian dollar AUD=D3 slipped0.1%to A$0.6649.
China's yuan CNY=CFXS was little changed against the U.S. currency at 7.2629 per dollar. It fellto 7.2631 per dollar earlier, the lowest since mid-November, andwithin sight of the lower end of the central bank's daily trading limit of 7.265 on Tuesday.
The yuan has never breached this threshold.
Politics was also at the forefront of investors' minds, with the first U.S. presidential debate between President Joe Biden and his predecessor Donald Trump set for Thursday and French elections due to begin this weekend.
In cryptocurrencies, bitcoin BTC= gained ground after its worst day in more than two months at the start of the week, in part due to flows out of bitcoin exchange-traded funds (ETFs), analysts said. Bitcoin BTC= was last up 4.6% at $62,182.
Currency bid prices at 25 June 07:08 p.m. GMT | |||||||
Description | RIC | Last | U.S. Close Previous Session | Pct Change | YTD Pct | High Bid | Low Bid |
Dollar index | =USD | 105.6 | 105.51 | 0.09% | 4.17% | 105.78 | 105.36 |
Euro/Dollar | EUR=EBS | 1.0715 | 1.0735 | -0.18% | -2.92% | $1.0744 | $1.0691 |
Dollar/Yen | JPY=D3 | 159.62 | 159.695 | -0.03% | 13.19% | 159.75 | 159.18 |
Euro/Yen | EURJPY= | 1.0715 | 171.34 | -0.18% | 9.9% | 171.39 | 170.71 |
Dollar/Swiss | CHF=EBS | 0.8944 | 0.8931 | 0.16% | 6.28% | 0.8953 | 0.8914 |
Sterling/Dollar | GBP=D3 | 1.2691 | 1.2685 | 0.07% | -0.26% | $1.2702 | $1.0691 |
Dollar/Canadian | CAD=D3 | 1.3653 | 1.3658 | -0.02% | 3.01% | 1.3681 | 1.3615 |
Aussie/Dollar | AUD=D3 | 0.6648 | 0.6657 | -0.11% | -2.48% | $0.6673 | $0.6636 |
Euro/Swiss | EURCHF= | 0.9584 | 0.9585 | -0.01% | 3.21% | 0.9595 | 0.9565 |
Euro/Sterling | EURGBP= | 0.844 | 0.846 | -0.24% | -2.63% | 0.8465 | 0.8431 |
NZ Dollar/Dollar | NZD=D3 | 0.6119 | 0.6124 | -0.08% | -3.17% | $0.613 | 0.6108 |
Dollar/Norway | NOK= | 10.6077 | 10.5354 | 0.69% | 4.66% | 10.6228 | 10.5209 |
Euro/Norway | EURNOK= | 11.3657 | 11.304 | 0.55% | 1.26% | 11.369 | 11.284 |
Dollar/Sweden | SEK= | 10.5015 | 10.47 | 0.3% | 4.32% | 10.5207 | 10.4557 |
Euro/Sweden | EURSEK= | 11.2528 | 11.2403 | 0.11% | 1.15% | 11.263 | 11.2174 |
Consumer confidence https://reut.rs/3XHnM8r
World FX rates https://tmsnrt.rs/2RBWI5E
Reporting by Gertrude Chavez-Dreyfuss; Additional reporting by Amanda Cooper in London and Rae Wee in Singapore; Editing by Mark Potter, Ros Russell and Nick Zieminski
Gerelateerde activa
Laatste nieuws
Disclaimer: De entiteiten van de XM Group bieden diensten en toegang tot ons online handelsplatform op basis van uitsluitend-uitvoering, waardoor een persoon de beschikbare content op of via de website kan bekijken en/of gebruiken, zonder dat dit is bedoeld voor wijziging of uitbreiding. Dergelijk(e) toegang en gebruik vallen onder: (i) de algemene voorwaarden; (ii) risicowaarschuwingen; en de (iii) volledige disclaimer. Dergelijke content wordt daarom alleen aangeboden als algemene informatie. Wees u er daarnaast vooral van bewust dat de inhoud op ons online handelsplatform geen verzoek of aanbieding omvat om transacties op de financiële markten uit te voeren. Het beleggen op welke financiële markt dan ook vormt een aanzienlijk risico voor uw vermogen.
Alle materialen die op ons online handelsplatform worden gepubliceerd zijn bedoeld voor educatieve/informatieve doeleinden en omvatten geen – en moeten niet worden beschouwd als het bevatten van – financieel, vermogensbelastings- of handelsadvies en aanbevelingen, of een overzicht van onze handelsprijzen, of een aanbod of aanvraag van een transactie in financiële instrumenten of ongevraagde financiële promoties voor u.
Alle content van derden, alsmede content die is voorbereid door XM, zoals opinies, nieuws, onderzoeken, analyses, prijzen en andere informatie of koppelingen naar externe websites op deze website worden aangeboden op een 'zoals-ze-zijn'-basis, als algemene marktcommentaren, en vormen geen beleggingsadvies. Voor zover dat content wordt beschouwd als beleggingsonderzoek, moet u zich ervan bewust zijn en accepteren dat de content niet bedoeld was en niet is voorbereid in overeenstemming met de wettelijke vereisten die zijn opgesteld om de onafhankelijkheid van beleggingsonderzoek te bevorderen en als zodanig onder de geldende wetgeving en richtlijnen moet worden beschouwd als marketingcommunicatie. Zorg ervoor dat u onze Mededeling over niet-onafhankelijk beleggingsonderzoek en risicowaarschuwing in verband met de voorgaande informatie doorneemt en begrijpt; die kunt u hier lezen.
