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Dollar steady in cautious start to busy data, Fed week
  + stars: | 2024-01-29 | by ( ) www.cnbc.com   time to read: +3 min
U.S. one hundred dollar bills are being shown in this picture illustration taken in Buenos Aires, Argentina, on December 15, 2023. The dollar started the week on a steady footing as investors took stock of U.S. economic data ahead of the Federal Reserve policy meeting this week, while escalating geopolitical tensions in the Middle East kept risk sentiment in check. But since then, strong economic data and pushback from central bankers have prompted traders to adjust expectations. Beyond the Fed, investors will also watch for a slew of economic data including a U.S. payrolls report that will help gauge the strength of labor market. Elsewhere, the Australian dollar rose 0.21% to $0.659, while the New Zealand dollar gained 0.18% to$0.610.
Persons: Marc Chandler, Chandler, Jerome Powell, Paul Mackel, Sterling, Joe Biden, bitcoin Organizations: Federal Reserve, Fed, Federal, HSBC, Bank of England, U.S, New Zealand Locations: Buenos Aires, Argentina, U.S, Bannockburn, Jordan, Syrian, Iran, Israel
Dollar gains on yen, bitcoin edges up before expected SEC decision
  + stars: | 2024-01-10 | by ( ) www.cnbc.com   time to read: +3 min
The SEC was expected to announce later in the day whether it will approve applications from asset managers Ark Investments and 21Shares (ABTC.S) to launch a spot bitcoin ETF. More than a dozen bitcoin ETF applications - including from BlackRock (BLK.N), Fidelity and VanEck - are also pending with the agency. The Consumer Price Index (CPI) due out on Thursday is the next likely driver of dollar direction. It is expected to show that headline inflation rose 0.2% in the month and by 3.2% on an annual basis. Anticipation of a positive SEC decision on ETFs, which is likely to draw billions of dollars in new investments, has boosted bitcoin prices in the past two months.
Persons: Exchange Commission's, Marc Chandler, Chandler, bitcoin, Chris Weston, Ethereum Organizations: Federal Reserve, U.S . Securities, Exchange, SEC, Ark Investments, BlackRock, Fidelity, Institute for Supply Management, Index, Fed, Bank of Japan Locations: U.S, Bannockburn, New York, Japan
The yen weakened 0.09% to 144.45 to start the second half of the year, having lost 9% against the dollar in the first six months of the year. Against the euro, the yen was hovering at 157.66, just under the 15-year low of 158 it touched last week. It intervened again in October after the yen plunged to a 32-year low of 151.94. Markets are pricing in a 84% chance of the Fed hiking rates by 25 basis points in its July meeting, CME FedWatch tool showed. The Australian dollar rose 0.02% to $0.667, while the New Zealand dollar rose 0.42% at $0.615.
Persons: Shunichi Suzuki, Suzuki, Marc Chandler, Sterling, Ankur Banerjee, Christopher Cushing, Kim Coghill Organizations: Finance, Japan, Bannockburn Forex, Bank of Japan, U.S, U.S . Federal, Citi, Labor, Survey, NatWest, New Zealand, Thomson Locations: SINGAPORE, Bannockburn, Japan, U.S ., U.S, United States, Singapore
Yen tentative, dollar soft as traders weigh Fed rate hike path
  + stars: | 2023-07-03 | by ( ) www.cnbc.com   time to read: +4 min
A Chinese 100 yuan banknote, a 1 U.S. dollar bill and a 50 euro banknote are lying on a table. The yen remained hunkered just below the psychologically important barrier of 145 per U.S. dollar on Monday, while the dollar was on the back foot after U.S. economic data last week showed slightly easing inflation and consumer spending. Against the euro, the yen was hovering at 157.495, below the 15-year low of 158 it touched last week. It was at 183.47 per sterling , just below the seven-and-a-half-year low of 183.86 it hit on Friday. The Australian dollar fell 0.14% to $0.666, while the New Zealand dollar rose 0.16% to $0.613
Persons: Shunichi Suzuki, Marc Chandler, bitcoin Organizations: Finance, Bannockburn Forex, Bank of Japan, U.S, U.S . Federal, PCE, Citi, Labor, Survey, Sterling, New Zealand Locations: U.S, Japan, Bannockburn, U.S ., United States
Dollar drifts as traders weigh rate path; yen fragile
  + stars: | 2023-06-19 | by ( Ankur Banerjee | ) www.reuters.com   time to read: +3 min
In an action-packed week of central bank decisions, the Federal Reserve left interest rates unchanged on Wednesday but hinted that further hikes were on the way to tame inflation. Investors, though, expect the central bank to be done with its tightening in July. On Monday, the yen touched a near seven-month low of 141.98 per dollar, having slid 1% on Friday. The yen also touched a fresh 15-year low against the euro of 155.32. The Australian dollar fell 0.32% to $0.686, while the kiwi eased 0.26% to $0.622.
Persons: Marc Chandler, Chandler, Jerome Powell's, Powell, Mansoor Mohi, uddin, Sterling, Ankur Banerjee, Muralikumar Organizations: U.S, Bank of Japan, Federal Reserve, European Central Bank, Bank of, Investors, Investor, Citi, Bank of Singapore, Thomson Locations: SINGAPORE, Bank of Japan, Bannockburn, New York, Singapore
When a lot of investors start to believe something, it's good to look at the "pain trade." The pain trade is the opposite: the trade that would cause the biggest pain to the most participants. The pain trade has the markets go lower on the FOMC statement and particularly during the news conference. The pain trade turns everything on its head. The pain trade therefore is that Powell will not imply a pause and the market will drop, perhaps significantly.
Yen retreats after BOJ policy tweak sparked surge
  + stars: | 2022-12-21 | by ( Saqib Iqbal Ahmed | ) www.reuters.com   time to read: +3 min
The BOJ decided to change its "yield curve control" policy on Tuesday even as it kept broad policy settings unchanged. It is letting 10-year yields move 50 basis points either side of its 0% target, wider than the previous 25-basis-point band. On Wednesday, the dollar was 0.4% higher against the yen , having plunged 3.8% in the previous session, its largest one-day drop against the Japanese currency in 24 years. The BOJ, long preoccupied with reviving price growth to avert a risk of deflation, has been an outlier among central banks this year. It has kept interest rates negative while other central banks have hiked hard to tame inflation and bolster domestic currencies against the U.S. dollar.
Yen eases after BOJ policy tweak sparked surge
  + stars: | 2022-12-21 | by ( Saqib Iqbal Ahmed | ) www.reuters.com   time to read: +3 min
NEW YORK, Dec 21 (Reuters) - The yen eased in a choppy session on Wednesday, ceding some of the ground gained the previous day when a surprise policy tweak by the Bank of Japan lifted the Japanese currency by 4% against the dollar. The BOJ decided to change its "yield curve control" policy on Tuesday even as it kept broad policy settings unchanged. It is letting 10-year yields move 50 basis points either side of its 0% target, wider than the previous 25 basis point band. On Wednesday, the dollar was 0.2% higher against the yen , having plunged 3.8% in the previous session, its largest one day drop against the Japanese currency in 24 years. I don't think we're going to 150 (yen) anytime soon," Chandler said.
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