Euro soars after Lagarde points to rate hikes, dollar extends slide



* ECB's Lagarde says negative rates to end soon

* Dollar drops across the board, follows sell-off last week

* Aussie adds 1%, but election reaction limited

LONDON, May 23 (Reuters) - The euro rallied on Monday after the European Central Bank president said policymakers would likely lift interest rates out of negative territory by September, while the dollar extended its recent slide.

A calmer mood on equity markets in European trading also pressured the dollar, which fell sharply last week but has been the go-to currency for investors this year when risk assets tumbled and worries about the economy and inflation jumped.

The euro was the big gainer, adding as much as 1.1% to $1.0687 EUR=EBS . It has now risen 3.3% since hitting a multi-year low of $1.0349 on May 13.

ECB President Christine Lagarde said in a blog post that the bank was likely to lift the euro area deposit rate out of negative territory by end-September and could raise it further if it saw inflation stabilising at 2%.

The euro's rally came as the dollar fell broadly, with a sell-off that began accelerating last week.

"We see this as just a temporary correction (in the U.S. dollar) for now. If we look at the main reasons why the dollar has been strengthening so much in recent months, we don't think that fundamental story has changed significantly over the past week," said MUFG analyst Lee Hardman.

"But in the very short term there is a risk that this correction lower could extend further," he added, pointing to a build-up in long dollar positions in recent weeks that leaves the market vulnerable.

The U.S. dollar index =USD , up about 16% to a two-decade high to 105.01 over the 12 months to the middle of May, fell 0.8% on Monday to 102.15.

The Australian dollar, which initially showed a muted reaction to the victory for the centre-left Labor Party in national elections at the weekend, climbed 1% to $0.7125 AUD=D3 .

The Japanese yen rose to 127.47 yen per dollar JPY=EBS .

The euro also rose 0.3% versus the Swiss franc to 1.0315 francs EURCHF=EBS , undoing some of the franc's gains since the Swiss National Bank chairman last week said policymakers were ready to act if inflation strengthened.

CHINA BOOST

Sentiment around China also helped riskier currencies. Shanghai is edging out of lockdown, and an unexpectedly big rate cut in China last week reassured investors.

The yuan had its best week since late 2020 last week and in offshore markets on Monday firmed to 6.6542 per dollar CNH=EBS , its strongest since early May.

Geopolitics are also in focus in Asia this week as U.S. President Joe Biden tours the region.

Commodity-linked currencies climbed, with the Norwegian crown up 0.5% versus the euro EURNOK=D3 and the Canadian dollar rising by a similar amount.

The U.S. dollar has soared this year but with expectations for repeated Federal Reserve interest rate hikes priced in, some analysts say further gains may be tougher from here.

Others say the macroeconomic backdrop still points to more downside for the euro, however.

"The Ukraine war keeps fuelling geopolitical uncertainties and recession risks mostly in Europe," said Thomas Hempell, head of macro & market research at Generali Investments.

"As inflation soars globally and lockdowns choke off growth in China, policy uncertainty keeps benefitting the anticyclical USD."



World FX rates Link
FX market positions Link



Reporting by Tommy Wilkes; Additional reporting by Tom
Westbrook in Singapore; Editing by Jan Harvey

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。

所有缐上交易平台所發佈的資料,僅適用於教育/資訊類用途,不包含也不應被視爲適用於金融、投資稅或交易相關諮詢和建議,或是交易價格紀錄,或是任何金融商品或非應邀途徑的金融相關優惠的交易邀約或邀請。

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。槓桿商品並不適合所有客戶。請詳細閱讀我們的風險聲明