Commodity currencies struggle, carry trade churn helps yen, Swiss franc
Updates at 1130 GMT
By Tom Westbrook and Alun John
SINGAPORE/LONDON, July 24 (Reuters) -Commodity currencies slid to multi-week lows on Wednesday on weakening raw material prices, with the heaviest selling against the yen which surged to its highest in two months as short sellers bailed out ahead of next week's central bank meeting.
The Canadian dollar CAD=D3 hit a three-month low of C$1.38 per dollar, ahead of a likely second rate cut in as many months by the Bank of Canada at its meeting later in the day.
The Australian dollar AUD=D3 fell as much as 0.5% and at $0.6583 was only a few pips from chart support at the early June low. It fell more than 1% on the yen to 101.79 yen AUDJPY= and is down nearly 7% against the Japanese currency in two weeks. AUD/
The New Zealand dollar NZD=D3 fell 0.6% to a near three-month low of $0.5914.
The moves tracked falling prices for industrial metals such as iron ore and copper, which made 3-1/2 month lows on a gloomy outlook for Chinese demand, and risk aversion in stock markets following some disappointing U.S. earnings. MET/L
"We're seeing softer demand in China and Asia in general and the kiwi and Aussie just being pulled down," said Jason Wong, senior markets strategist at BNZ in Wellington.
The euro EUR=EBS suffered after soft business activity dataand was last down 0.1% against the dollar at $1.10842 and fell 0.14% on the pound to 83.99 pence as the picture looked perkier in Britain. EURGBP=D3. GBP/
But the European common currency continued to climb against peers to the north, and hit a new eight-month top on the Norwegian crown of 12.00 crowns EURNOK=D3 and a two-month high of 11.727 on the Swedish crown. EURSEK=D3
"These are the two least liquid currencies in G10, and we suspect markets are particularly punishing this aspect and rebuilding those shorts that had been trimmed throughout May and June," said Francesco Pesole FX strategist at ING.
In Asia, the risk of a rate hike for Japan and recent rounds of suspected currency intervention have speculators rushing to close what had been profitable "carry" trades funded in yen. The Bank of Japan reviews policy next Tuesday and Wednesday.
In a carry trade investors borrow in a low-yielding currency to invest in higher-yielding assets denominated other currencies.
Dollar/yen JPY=EBS went down nearly 1% on Tuesday and fell another 0.7% on Wednesday to its lowest since mid-May at 154.28 per dollar. The yen is the best performing G10 currency against the dollar in July so far.
Moves in other pairs have been larger, with the euro EURJPY= dropping 1.3% on the yen Tuesday and a further 0.86% to an 11-week low of 167.43 on Wednesday.
Mexico's high-yielding peso dropped 2% on the yen MXNJPY= on Tuesday and another 1.1% on Wednesday.
The churn in yen funded carry trades also had an effect on the other favoured funding currency, the Swiss franc, against which the dollar was down 0.43% at 0.8875 francs and the euro was down 0.57% at 0.9620. CHF=EBS, EURCHF=EBS
Later in the week, markets are waiting on U.S. GDP and core PCE data to test expectations for two U.S. rate cuts over the rest of this year.
World FX rates https://tmsnrt.rs/2RBWI5E
Reporting by Tom Westbrook in Singapore and Alun John in London; Editing by Sam Holmes, Bernadette Baum and David Evans
Ativos relacionados
Últimas notícias
Isenção de Responsabilidade: As entidades do XM Group proporcionam serviço de apenas-execução e acesso à nossa plataforma online de negociação, permitindo a visualização e/ou uso do conteúdo disponível no website ou através deste, o que não se destina a alterar ou a expandir o supracitado. Tal acesso e uso estão sempre sujeitos a: (i) Termos e Condições; (ii) Avisos de Risco; e (iii) Termos de Responsabilidade. Este, é desta forma, fornecido como informação generalizada. Particularmente, por favor esteja ciente que os conteúdos da nossa plataforma online de negociação não constituem solicitação ou oferta para iniciar qualquer transação nos mercados financeiros. Negociar em qualquer mercado financeiro envolve um nível de risco significativo de perda do capital.
Todo o material publicado na nossa plataforma de negociação online tem apenas objetivos educacionais/informativos e não contém — e não deve ser considerado conter — conselhos e recomendações financeiras, de negociação ou fiscalidade de investimentos, registo de preços de negociação, oferta e solicitação de transação em qualquer instrumento financeiro ou promoção financeira não solicitada direcionadas a si.
Qual conteúdo obtido por uma terceira parte, assim como o conteúdo preparado pela XM, tais como, opiniões, pesquisa, análises, preços, outra informação ou links para websites de terceiras partes contidos neste website são prestados "no estado em que se encontram", como um comentário de mercado generalizado e não constitui conselho de investimento. Na medida em que qualquer conteúdo é construído como pesquisa de investimento, deve considerar e aceitar que este não tem como objetivo e nem foi preparado de acordo com os requisitos legais concebidos para promover a independência da pesquisa de investimento, desta forma, deve ser considerado material de marketing sob as leis e regulações relevantes. Por favor, certifique-se que leu e compreendeu a nossa Notificação sobre Pesquisa de Investimento não-independente e o Aviso de Risco, relativos à informação supracitada, os quais podem ser acedidos aqui.
