Dollar keeps climbing; Norges Bank signals September rate hike

* Dollar index jumps to two-month high

* Fed signals earlier than expected rate increases

* Euro-dollar drops

* Graphic: World FX rates Link

By Elizabeth Howcroft

LONDON, June 17 (Reuters) - The dollar carried on strengthening on Thursday, reaching its highest in more than two months, after the U.S. Federal Reserve surprised markets by signalling it would raise interest rates and end emergency bond-buying sooner than expected.

Fed officials on Wednesday projected an accelerated timetable for rate increases, began talks on how to end emergency bond-buying, and said that the COVID-19 pandemic was no longer a core constraint on U.S. commerce.

A majority of 11 Fed officials pencilled in at least two quarter-point rate increases for 2023, adding in their statement that they would keep policy supportive for now to encourage a labour market recovery.

U.S. Treasury yields rose by the most since early March, while equities fell.

Having on Wednesday clocked its biggest daily gain since March 2020, the dollar was steady during Thursday's Asian session and then extended gains as European markets opened.

At 1030 GMT, the dollar index was up 0.5% on the day at 91.825, its highest since April 13 =USD . The euro dropped versus the dollar, with euro-dollar changing hands at a two-month low of $1.19295 EUR=EBS .

"We think USD will hold on to its gains," Elsa Lignos, global head of FX strategy at RBC Capital Markets, wrote in a note to clients.

"In order to build on those gains, we need some further positive data surprises."

Deutsche Bank strategists said they were closing their long euro-versus-dollar trade recommendation, which was based on the Fed being dovish.

"One thing is clear: the Fed is no longer willing to push back on market pricing nor is it as committed to its transitory inflation narrative," the bank said in a note to clients.

"We see the combined effects as dollar bullish: there is greater scope for a front-end real rate repricing in the US yield curve rather than just breakevens, as well as room for higher volatility."

The pound and Canadian dollar - which had benefited from the expectation that their respective central banks would tighten policy more quickly than the Fed - lost out. Both fell to a six-week low versus the U.S. dollar GBP=D3 CAD=D3 .

The U.S. dollar gained as much as 1.2% against the Swedish crown SEK=D3 .

Versus the Swiss franc, the dollar was up 0.8% at 0.9153 - also a six-week high CHF=EBS .

The Kiwi dollar strengthened after data showed New Zealand’s economy grew much faster than expected in the first quarter. But by 1039 GMT, it was down 0.3% on the day at $0.7027 NZD=D3 .

With equity markets in the red, the Australian dollar - seen as a proxy for risk appetite - was down 0.4% at 0.75815, its lowest since April 1 AUD=D3 .

Australia also had upbeat data, with job creation beating expectations in May and unemployment diving to pre-pandemic lows.

Norway's central bank kept its key interest rate unchanged as expected, but said an increase was likely in September and steepened its trajectory of subsequent rate rises as the economy recovers from the effects of COVID-19.

Versus the dollar, the Norwegian crown was still down around 1% on the day NOK= , and versus the euro, it slipped about 0.4%, changing hands at 10.214 EURNOK= .

"The path of least resistance is ultimately towards a lower euro-nokkie, but for now at least markets are struggling in the context of the bigger picture story which is obviously dominated by the dollar," said Jeremy Stretch, head of G10 FX strategy at CIBC Capital Markets.

"Ultimately, we will see this Norges bank hawkishness played out via euro-nokkie trending back lower towards mid 9.90s in the next month or two," he said.

Elsewhere, bitcoin was trading around $39,300, slightly up on the day BTC=BTSP . Ether was up 3% at $2,437 ETH=BTSP .

World FX rates Link
USD Link

Reporting by Elizabeth Howcroft; editing by John Stonestreet,
Robert Birsel

免責聲明: XM Group提供線上交易平台的登入和執行服務,允許個人查看和/或使用網站所提供的內容,但不進行任何更改或擴展其服務和訪問權限,並受以下條款與條例約束:(i)條款與條例;(ii)風險提示;(iii)完全免責聲明。網站內部所提供的所有資訊,僅限於一般資訊用途。請注意,我們所有的線上交易平台內容並不構成,也不被視為進入金融市場交易的邀約或邀請 。金融市場交易會對您的投資帶來重大風險。


本網站的所有XM和第三方所提供的内容,包括意見、新聞、研究、分析、價格其他資訊和第三方網站鏈接,皆爲‘按原狀’,並作爲一般市場評論所提供,而非投資建議。請理解和接受,所有被歸類為投資研究範圍的相關内容,並非爲了促進投資研究獨立性,而根據法律要求所編寫,而是被視爲符合營銷傳播相關法律與法規所編寫的内容。請確保您已詳讀並完全理解我們的非獨立投資研究提示和風險提示資訊,相關詳情請點擊 這裡查看。

我們運用 cookies 提供您最佳之網頁使用經驗。更改您的cookie 設定跟詳情。

風險提示: 您的資金存在風險。杠杆商品可能不適合所有客戶。 請詳細閱讀我們的風險聲明