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☆ Dollar gains on resilient U.S. economy, flight to safety
▼ + stars: | 2023-05-24 | by ( ) www.cnbc.com time to read: +3 min

"If you consider global data of late, it's painting a more resilient picture of the U.S. economy than what's going on in Europe," he said. The dollar index , which tracks the U.S. currency against six major peers, hit 103.91, its highest since March 20. "The U.S. dollar has been rallying more or less for three weeks helped by stronger-than-expected data and rising U.S. interest rates," he said. The Swedish currency hit 11.541 crowns per euro, its weakest against the common currency since March 2009. The dollar strengthened 0.82% against the crown , while the New Zealand dollar slid 2.29% against the U.S. currency to 0.61050.

Persons: Joe Manimbo, Manimbo, Marc Chandler, Chandler, We're, Simon Harvey Organizations: Reserve, Bannockburn Global, U.S, Atlanta Federal Reserve Bank, European Central Bank, New, New Zealand, Bank, England, Bank of England Locations: Washington, U.S, Europe, Bannockburn, New York

The euro, meanwhile, dropped to a six-week low versus the dollar at $1.0811 . Wednesday's data showed that U.S. single-family homebuilding increased in April, but data for the prior month was revised sharply lower. Single-family housing starts, which account for the bulk of homebuilding, rose 1.6% to a seasonally-adjusted annual rate of 846,000 units last month. In late morning trading, the dollar rose 0.7% versus the yen to 137.37 yen, after earlier climbing to a two-week peak of 137.445 . In the offshore market, the dollar rose 0.2% to 7.00911 .

☆ Dollar notches biggest weekly rise since February
▼ + stars: | 2023-05-12 | by ( ) www.cnbc.com time to read: +3 min

The U.S. dollar rose against the euro and sterling on Friday, and notched its biggest weekly gain since February, as investors shifted to safe havens after consumer sentiment data fueled concern about the U.S. debt ceiling and monetary policy. A University of Michigan survey on Friday showed May U.S. consumer sentiment slumped to a six-month low on worries that political dispute over raising the federal government's borrowing cap could trigger a recession. "Rate differentials are continuing to tilt in the dollar's favor," said Karl Schamotta, chief market strategist of Corpay in Toronto. Recent data showing a slowing economy has boosted the case that the Fed will pause hiking rates at its June meeting. That left the dollar index up 0.63% at 102.70, notching a weekly gain of 1.4% — its biggest weekly rise since February.

☆ Dollar stronger as market rethinks monetary policy outlook
▼ + stars: | 2023-05-11 | by ( ) www.cnbc.com time to read: +2 min

The U.S. dollar rose against the euro and sterling on Thursday and set a more than one-week high against a basket of its major peers as traders sought safety after a series of economic data prompted a reassessment of their outlook for global monetary policy. U.S. producer prices, on the other hand, showed a moderate rise last month, posting the smallest annual increase in producer inflation in more than two years, further evidence that inflation pressures were easing. "I think the market is starting to rethink the outlook for the Fed cutting rates after inflation, while lower, remained on the high side. The dollar index , which tracks the U.S. currency against six major peers, rose 0.58% to 102.07, its highest showing in more than a week. "So, it just felt like a reaction to take off risk more broadly...Let's buy the dollar.

☆ U.S. dollar struggles, pound hits one-year high
▼ + stars: | 2023-05-08 | by ( ) www.cnbc.com time to read: +2 min

The dollar index, which measures the currency against six rivals, was slightly higher at 101.41, a better showing than the one-year low of 100.78 reached last month. Fed funds futures traders are now pricing for the fed funds rate to reach 4.993 in July, and remain below that all year. Sterling hit a more than one-year peak against the dollar on Monday, with the pound trading as high as $1.2668, its highest since April 2022, but slipped slightly below that, and was last seen at $1.2614. The pound remains in focus this week ahead of an expected Bank of England rate increase on Thursday, and has also been firming versus the euro. Meanwhile, U.S. inflation data due on Wednesday, could indicate whether the Fed must do more to rein in inflation.

☆ US dollar gains as inflation data backs Fed rate hike; yen sinks
▼ + stars: | 2023-04-28 | by ( Gertrude Chavez-Dreyfuss | ) www.reuters.com time to read: +3 min

The dollar index, a measure of the greenback's value against six major currencies, rose 0.1% to 101.54 . Friday's data showed the personal consumption expenditures (PCE) price index edged 0.1% higher in March after rising 0.3% in February. In the 12 months through March, the PCE price index increased 4.2% after climbing 5.1% in February. The so-called core PCE price index gained 4.6% on a year-on-year basis in March after rising 4.7% in February. Following the inflation data, the rate futures market has priced in a 90% chance of a 25 basis-point hike next week.

☆ U.S. dollar advances as inflation data affirms Fed rate hike next week
▼ + stars: | 2023-04-28 | by ( Gertrude Chavez-Dreyfuss | ) www.reuters.com time to read: +2 min

The dollar index, a measure of the greenback's value against six major currencies, rose 0.7% to 102.10 . In the 12 months through March, the PCE price index increased 4.2% after climbing 5.1% in February. Excluding the volatile food and energy components, the PCE price index inched up 0.3% after increasing at the same rate in February. The so-called core PCE price index gained 4.6% on a year-on-year basis in March after rising 4.7% in February. Following the data, the rate futures market has priced in a 90% chance of a 25 basis-point hike next week.

☆ Instant View: US March PCE price index shows high, but cooling, inflation
▼ + stars: | 2023-04-28 | by ( ) www.reuters.com time to read: +5 min

The personal consumption expenditures (PCE) price index gained 0.1% in March after rising 0.3% in February. In the 12 months through March, the PCE price index increased 4.2% after climbing 5.1% in February. "Will the Fed raise rates at the May meeting. I don't think it'll influence them one way or another but we expect them to raise rates again. I don’t think it’s going to impact the Fed much if at all.

☆ Dollar slides as rate cuts priced in; yen falls ahead of BOJ meeting
▼ + stars: | 2023-04-24 | by ( ) www.cnbc.com time to read: +3 min

The dollar fell to a more than one-week low against major currencies on Monday in generally thin trading, as investors continued to price in interest rate cuts this year by the Federal Reserve after a widely expected rate increase at next week's policy meeting. Fed policymakers are widely expected to raise rates by another 25 bps at next week's meeting, but they are seen pausing in June. The rate futures market has also factored in roughly 50 bps of rate cuts by the end of the year. There were likewise hawkish remarks from Belgian central bank chief and ECB policy maker Pierre Wunsch. Beyond the excitement of the euro/yen cross, currency markets were quiet, as traders waited for key central bank meetings, the first of which is the BOJ on Friday, the first Ueda will chair.

TOKYO, April 19 (Reuters) - The dollar strengthened on Wednesday, lifted by rising Treasury yields, though the pound gained against the greenback after British inflation stayed above 10% in March and put more pressure on the Bank of England to keep raising rates. "We still think that over the medium- to long-term that the dollar is going to continue to come under considerable amounts of pressure. Wednesday data showed British consumer price inflation eased less than expected in March to 10.1% from February's 10.4%, meaning Britain has western Europe's highest rate of consumer inflation. Deutsche Bank on Wednesday revised up expectations for British rates to include two more 25 basis point rate hikes from the Bank of England. Currency bid prices at 2:42PM (1842 GMT)Reporting by Kevin Buckland; Editing by Jacqueline WongOur Standards: The Thomson Reuters Trust Principles.

☆ Dollar drops as inflation cools more than expected
▼ + stars: | 2023-04-12 | by ( Karen Brettell | ) www.reuters.com time to read: +3 min

In the 12 months through March, the CPI increased 5.0%, the smallest year-on-year gain since May 2021. Economists at Goldman Sachs said after the data that they no longer expect the Fed to raise rates in June. The dollar index fell 0.60% on the day to 101.49 and is down from around 102.11 before the data. The dollar dipped to 133.13 Japanese yen , down 0.47% on the day, from around 133.85 before the data. Retail sales data on Friday will be analyzed next for how consumer spending is being affected by higher prices.

Durable goodsThe report dented some of the hawkishness built into U.S. interest rates, though they are expected to remain higher for longer, analysts said. The National Association of Realtors (NAR) said its Pending Home Sales Index, based on signed contracts, jumped 8.1% last month, the biggest increase since June 2020. Traders now expect the Fed to raise interest rates to about 5.4% in July, according to pricing in futures markets . At the beginning of February, they envisaged rates rising to a peak of just 4.9%. The dollar index , which measures the currency against six major peers, fell 0.513% and is on track to snap a four-month losing streak.

U.S. and European equity markets were mixed to lower, with the euro and pound lower against the dollar. The broad pan-European STOXX 600 index (.STOXX) was up 0.04% and MSCI's gauge of global stock performance (.MIWD00000PUS) shed 0.12%. "What's been really important is that the market sees a lower likelihood of rate cuts by the end of the year." Asian stocks stabilized overnight after they, like most global share markets, suffered steep losses following that U.S jobs data. "Sentiment in markets is dominated by central banks and the repricing of rates yet again," Kerry Craig, JPMorgan Asset Management's global market strategist, said.

Inflation data improved too, as growth in personal consumption expenditures slowed to 2.1% year over year from 2.3% in the prior quarter while the GDP price index, another inflation measure, decelerated to 3.5%. MSCI's all-country world index, a gauge of stocks in 47 countries, (.MIWD00000PUS) rose 0.62% to hit a fresh five-month high, while the dollar index rose 0.325%. "What Powell has pushed back on a lot is to not really think about lowering rates at all," Ragan said. "But they are willing to pause and hold rates at a high level for a certain period of time." The Dow Jones Industrial Average (.DJI) rose 0.31%, the S&P 500 (.SPX) gained 0.70% and the Nasdaq Composite (.IXIC) added 1.24%.

MSCI's all-country world index, a gauge of stocks in 47 countries, (.MIWD00000PUS) was up 0.18% after paring gains after hitting a fresh five-month high. The dollar index rose 0.512%. The largely better-than-expected data can help the weakening dollar find a near-term floor, said Joe Manimbo, senior market analyst at Convera in Washington. "On balance, the data being better than expected suggests there's more resilience in the economy than many have given it credit," he said. Oil prices rose more than 1% on Thursday on expectations demand will strengthen as top oil importer China reopens its economy and on positive U.S. economic data.

NEW YORK, Jan 23 (Reuters) - The dollar edged lower against the euro on Monday, as the common currency found support from European Central Bank officials' comments signalling additional jumbo interest rate rises in Europe. The euro reached as high as $1.0927 , to trade at its highest level since April last year, before paring gains to trade up 0.1 % at $1.0865. A Reuters survey of analysts also favoured hikes of 50 basis points at the next two meetings and an eventual rate peak of 3.25%, from the current rate of 2%. "Really what's driving things is central bank policy divergence," said Joe Manimbo, senior market analyst at Convera in Washington. So when you weigh the outlook for central bank policy, it depicts the dollar at a disadvantage, given market bets on the Fed moving more slowly than its counterparts abroad," Manimbo said.

☆ U.S. dollar advances vs major currencies as risk appetite fades
▼ + stars: | 2023-01-18 | by ( Gertrude Chavez-Dreyfuss | ) www.reuters.com time to read: +5 min

The earlier sell-off in the dollar came after the Bank of Japan maintained ultra-low interest rates. In afternoon trading, the U.S. currency rose against the commodity-linked currencies such as the Australian, New Zealand, and Canadian dollars, which sensitive to risk appetite. The Australian dollar fell 0.7% to US$0.6936, after hitting its highest since August last year. In Japan, the BOJ kept intact its yield curve control (YCC) targets, set at -0.1% for short-term interest rates and around 0% for the 10-year yield, by a unanimous vote. The dollar rose as much as 2.7% to 131.58 yen before gains were pared.

The Bank of England also raised its key interest rate by a further half-percentage point on Thursday and indicated more hikes were likely. "Both the Fed and ECB delivering more hawkish rate steers are compounding recession fears," said Joe Manimbo, senior market analyst at Convera in Washington. Powell was also particularly hawkish in his comments, noting that ongoing rate hikes are appropriate to get sufficiently restrictive. In afternoon trading, the dollar rose to two-week highs against the yen, and last traded up 1.6% at 137.665 . Sterling also fell sharply as investors believe the BOE is nearing the end of its rate hikes.

Economists said the reading pointed to elevated labor costs and inflation staying high, adding pressure on the Federal Reserve to keep raising rates. "Slower rate hikes have been the trend globally of late, but the Fed remains a wild card. Overall, it's a fickle, anxious market ahead of next week’s Fed meeting," said Joe Manimbo, senior market analyst at Convera in Washington. Many in the market believe inflation is moderating and bond yields have peaked, allowing the Fed and other central banks to begin slowing rate hikes when policy-makers meet next week. Gold prices rose, helped by a retreat in the dollar and Treasury yields, as investors anticipate the projection of slower rate hikes at the Fed's meeting on Dec. 13-14.

☆ Dollar gives back gains, strong wage growth complicates Fed policy
▼ + stars: | 2022-12-02 | by ( ) www.cnbc.com time to read: +3 min

"Stronger-than-expected hiring can buy the Fed more time to stay aggressive," Joe Manimbo, senior market analyst at Convera in Washington, said. But the dollar gave back gains as investors took profits before the weekend and as Fed officials spoke on the outlook. The dollar index was last down 0.13% on the day against a basket of currencies at 104.49, and the euro gained 0.10% to $1.0533. In the 12 months through October, the PCE price index increased 6.0% after advancing 6.3% in September. The next major U.S. economic indicator will be consumer price inflation data due on Dec. 13, one day before the Fed concludes its two-day meeting.

"The softer inflation data took some wind out of the dollar's sails," said Joe Manimbo, senior market analyst at Convera in Washington. "The dollar is steadier because we're having this residual, geopolitical skittishness as well as signs of a fairly sturdy U.S. economic backbone in the forms of U.S. retail sales." Retail sales rose 1.3% in October, more than the 1.0% increase that economists polled by Reuters had forecast. The dollar briefly pared losses on release of the retail sales data, but later fell against the euro to trade little changed against major currencies. Yields fell further on the market's benign inflation outlook.

☆ U.S. Q3 GDP rise burnishes soft landing case
▼ + stars: | 2022-10-27 | by ( ) www.reuters.com time to read: +4 min

Economists polled by Reuters had forecast GDP growth rebounding at a 2.4% rate. Exports will soon fade and domestic demand is getting crushed under the weight of higher interest rates. We expect the economy to enter a mild recession in the first half of next year." BRIAN JACOBSEN, SENIOR INVESTMENT STRATEGIST, ALLSPRING GLOBAL INVESTMENTS, MENOMONEE FALLS, WISCONSIN“GDP was a weak bounce from the negative prints in Q1 and Q2. The Fed wants to see pain on Main Street.”Compiled by the Global Finance & Markets Breaking News teamOur Standards: The Thomson Reuters Trust Principles.

[1/2] Boards displaying buying and selling rates are seen outside of currency exchange outlets in London, Britain, July 31, 2019. read moreRishi Sunak became Britain's third prime minister in two months on Tuesday, tasked with tackling a mounting economic crisis and a warring political party. The U.S. dollar was broadly weaker amid signs that Federal Reserve rate hikes are slowing the world's biggest economy. YEN AND YUANThe yen firmed against the dollar after suspected Bank of Japan (BOJ) intervention on Friday and Monday. At 147.665 yen, the dollar was down from a 32-year high of 151.94 on Friday, which appeared to trigger successive bouts of BOJ intervention.

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