Dollar steady as traders consider Fed, global rates outlook
By Rae Wee
SINGAPORE, June 8 (Reuters) -The dollar was on the back foot on Thursday, though it drew some support from higher U.S. Treasury yields as traders contemplated the possibility of another rate hike by the U.S. Federal Reserve, even if it pauses next week.
The increased expectations that U.S. and global interest rates may have further to rise has come on the back of surprise rate increases by the Bank of Canada (BoC) and the Reserve Bank of Australia (RBA) this week.
The BoC on Wednesday hiked its overnight rate to a 22-year high of 4.75% after a four-month pause, while the RBA on Tuesday similarly raised interest rates by a quarter-point to an 11-year high and warned of more to come.
The Canadian dollar CAD=D3 was last steady at C$1.3365 to the greenback, after rising to a one-month top of C$1.3321 in the previous session.
"Canada's central bank is viewed as one of the leaders when it comes to being proactive with monetary policy," said Edward Moya, senior market analyst at OANDA.
"The BoC is signaling that more rate hikes could come and that has everyone rethinking that the Fed will be done after the July hike."
Elsewhere, the U.S. dollar edged broadly lower in early Asia trade, with sterling GBP=D3 rising 0.08% to $1.2449, while the euro EUR=EBS similarly gained 0.08% to $1.0707.
European Central Bank policymakers had on Wednesday struck a hawkish tone and guided that more rate hikes are on the horizon, with interest rates likely to stay higher for longer.
Against the yen, the greenback slipped 0.21% to 139.85 JPY=EBS, with the Japanese currency buoyed by Thursday's data showing Japan's economy grew an annualised 2.7% in the first quarter, much higher than the initial estimate for a 1.6% expansion.
The U.S. dollar index =USD dipped slightly to 104.02, though strayed not too far from an over two-month high hit last week, on the back of higher Treasury yields. US/
The two-year Treasury yield US2YT=RR, which typically moves in step with interest rate expectations, last stood at 4.5479%, after touching an over one-week high of 4.604% in the previous session.
The benchmark 10-year yield US10YT=RR was last at 3.7914%, having risen roughly 10 basis points to peak at 3.801% on Wednesday.
Money markets are pricing in a 29% chance that the Fed raises rates by 25bps at its policy meeting next week. FEDWATCH
"Markets have raised their FOMC rate hike expectations following a surprise Bank of Canada rate hike," said Carol Kong, a currency strategist at Commonwealth Bank of Australia. "The Funds futures market is pricing an 81% chance of a 25bp FOMC hike by July."
CHINA SLUMP
In Asia, the Chinese offshore yuan CNH=D3 was pinned near a more than six-month low at 7.1469 per dollar, after having slid to 7.1527 in the previous session, its lowest since late November.
Data released on Wednesday showed China's exports shrank much faster than expected in May while imports extended declines, raising doubts about the country's fragile economic recovery.
"To some extent, it's a view that the trade data's another symptom of a faltering recovery," said Ray Attrill, head of FX strategy at National Australia Bank.
The Aussie AUD=D3 was last 0.18% higher at $0.6665, having slipped nearly 0.3% in the previous session, while the kiwi NZD=D3 rose 0.22% to $0.6050, reversing some of Wednesday's 0.7% fall.
Both antipodean currencies are often used as liquid proxies for the Chinese yuan.
In other currencies, the Turkish lira TRYTOM=D3 slumped to a record low of 23.39 per dollar.
World FX rates https://tmsnrt.rs/2RBWI5E
Reporting by Rae Wee; Editing by Lincoln Feast.
Activos relacionados
Últimas noticias
Descargo de responsabilidades: Cada una de las entidades de XM Group proporciona un servicio de solo ejecución y acceso a nuestra plataforma de trading online, permitiendo a una persona ver o usar el contenido disponible en o a través del sitio web, sin intención de cambiarlo ni ampliarlo. Dicho acceso y uso están sujetos en todo momento a: (i) Términos y Condiciones; (ii) Advertencias de riesgo; y (iii) Descargo completo de responsabilidades. Por lo tanto, dicho contenido se proporciona exclusivamente como información general. En particular, por favor tenga en cuenta que, los contenidos de nuestra plataforma de trading online no son ni solicitud ni una oferta para entrar a realizar transacciones en los mercados financieros. Operar en cualquier mercado financiero implica un nivel de riesgo significativo para su capital.
Todo el material publicado en nuestra plataforma de trading online tiene únicamente fines educativos/informativos y no contiene –y no debe considerarse que contenga– asesoramiento ni recomendaciones financieras, tributarias o de inversión, ni un registro de nuestros precios de trading, ni una oferta ni solicitud de transacción con instrumentos financieros ni promociones financieras no solicitadas.
Cualquier contenido de terceros, así como el contenido preparado por XM, como por ejemplo opiniones, noticias, investigaciones, análisis, precios, otras informaciones o enlaces a sitios de terceros que figuran en este sitio web se proporcionan “tal cual”, como comentarios generales del mercado y no constituyen un asesoramiento en materia de inversión. En la medida en que cualquier contenido se interprete como investigación de inversión, usted debe tener en cuenta y aceptar que dicho contenido no fue concebido ni elaborado de acuerdo con los requisitos legales diseñados para promover la independencia en materia de investigación de inversiones y, por tanto, se considera como una comunicación comercial en virtud de las leyes y regulaciones pertinentes. Por favor, asegúrese de haber leído y comprendido nuestro Aviso sobre investigación de inversión no independiente y advertencia de riesgo en relación con la información anterior, al que se puede acceder aquí.
