Dollar rally stalls as risk appetite returns



(Updates prices, market activity, comments to U.S. market open; changes dateline, previous LONDON)

By Saqib Iqbal Ahmed

NEW YORK, May 17 (Reuters) - The dollar eased for a third straight day on Tuesday, pulling back from a two-decade high against a basket of major peers, as an uptick in investors' appetite for riskier bets diminished the U.S. currency's safe-haven appeal.

Upbeat earnings views from Home Depot HD.N and United Airlines UAL.O along with optimism around the easing of China's crackdown on tech and COVID-19, helped to lift risk sentiment.

The U.S. Dollar Currency Index =USD , which tracks the greenback against six major currencies, was down 0.7% at 103.39, its lowest since May 6. The index hit a two-decade high last week supported by a hawkish Federal Reserve and worries over the global economic fallout from the Russia-Ukraine conflict.

"The mood in markets has improved dramatically relative to last week with most asset classes bouncing and retracing the moves seen last week," Brad Bechtel, global head of FX at Jefferies, said in a note to clients.

"The result is a rally in equities and sell-off in fixed income with nearly every currency in the world rallying against the USD," Bechtel said.

The dollar remained subdued after data showed U.S. retail sales increased solidly in April as consumers bought motor vehicles amid an improvement in supply and frequented restaurants, showing no signs of demand letting up despite high inflation.

Fed speakers on Tuesday, including Chairman Jerome Powell at 1800 GMT, will be closely watched for any clues about whether near-term rate expectations could become even more aggressive.

The euro was up 1.05% at $1.0541, extending its rebound from a five-year low touched last week, and putting more distance between the common currency and parity with the U.S. dollar.

The currency, which benefited from ECB policymaker Francois Villeroy de Galhau saying on Monday that a weak euro could threaten price stability in the currency bloc, rose after hawkish comments from Dutch central bank chief Klaas Knot.

Knot said that not only was the European Central Bank set to hike rates by 25 basis points in July, it was also ready to consider a bigger rise if inflation proved higher than expected.

"We think the euro sell-off is starting to look stretched," said Shaun Osborne, chief currency strategist at Scotia Bank.

Sterling also took advantage of the softer dollar to jump 1.29% to its highest level since May 5 after strong labour market data reinforced expectations that the Bank of England would continue to raise rates to fight inflation.

The Australian dollar AUD=D3 , viewed as a liquid proxy for risk appetite, rose 0.73%.

Australia's central bank considered a sharper rise in interest rates at its May meeting, minutes published on Tuesday showed, in a heavy hint it will hike again in June.

The Chinese offshore yuan CNH=D3 gained 0.8% after a steep slide that has knocked it about 7% lower since mid-April.

Shanghai logged three consecutive days with no new COVID-19 cases outside quarantine zones on Tuesday, a milestone that in other cities has signalled the beginning of lifting restrictions.

Meanwhile, bitcoin, the world's largest cryptocurrency, was up 2.23% at $30,497.41, as it continued to steady after dipping below the $30,000 level last week.



GRAPHIC: World FX rates Link
GRAPHIC: Buck takes a breather Link



Reporting by Saqib Iqbal Ahmed; editing by Barbara Lewis

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.

Usamos cookies para lhe dar a melhor experiência no nosso website. Ler mais ou alterar as configurações de cookies.

Aviso de risco: O seu capital está em risco. Os produtos alavancados podem não ser adequados para todos. Recomendamos que consulte a nossa Divulgação de Riscos.