Dollar records three consecutive days of defeats as selling pressure weakens

New York: The US dollar on Friday has seen a surge in recent sales driven by the view that the Fed tightening has been significantly eased, weakening financial market risk motivation and making investors more risky currencies. To avoid it, I recorded a three-day losing streak.

The US dollar index was 95.157, up 0.3%, but is still expected to fall by about 0.6% for the week, the worst weekly since early September.

Fed Chair Jerome Powell said the US economy is ready to launch more stringent monetary policy, and despite data showing the largest annual rise in inflation, 6 against a basket of currencies in 2021. The greenback, which has risen by more than%, has been under pressure this week in almost 40 years.

Investors say the US dollar has peaked, the Fed’s tightening moves have been priced, and the euro and others will offer better potential returns in the future, Scotiabank’s forex strategist said. That’s it. “

“We disagree, but we must admit that the US dollar is at least psychologically suffering a setback as it breaks supportive yield spreads compared to its peers and falls below the base of recent integrations. Must be, “they said.

Hedge fund dollars have approached their highest levels since early 2020, increasing selling pressure on the dollar this week, analysts said.

US retail sales fell the most in the 10 months of December. This could be the result of Americans starting holiday shopping in October to avoid empty shelves in the store. [nL1N2TU18H]

The dollar struggled to rise against the Japanese yen on Friday, while the US dollar fell 0.02% to a three-week low of 114.15 yen.

Safe Japanese currencies have benefited from the recent deterioration of risk sentiment in global financial markets.

Bank of Japan policymakers are discussing how quickly the final rate hike telegram can be launched before inflation reaches the bank’s target of 2%, according to Reuters.

The Australian dollar, which was considered a fluid substitute for risk appetite, fell 0.99% to its second low in two days as global stock markets were under pressure on Friday and Treasury yields rose.

Investors are impacted by potential changes in the country’s leadership as Prime Minister Boris Johnson faces a serious crisis for the Prime Minister after being exposed to a series of rallies in Downing Street during the blockade of COVID-19. As evaluated, Sterling was 0.22% lower than the dollar.

Cryptocurrencies struggled to make a meaningful rebound after making a sharp loss at the beginning of the week. Bitcoin rose about 1% on the day to $ 43,086.34, not far from the five-month low of $ 39,558.70 on Monday.

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Dollar records three consecutive days of defeats as selling pressure weakens

Source link Dollar records three consecutive days of defeats as selling pressure weakens

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