FOREX-Dollar at three-week lows as Treasury yields subdued Reuters 2 hrs ago By Karen Brettell Graphic: World FX rates https://tmsnrt.rs/2RBWI5E (Adds comments from Fed s Powell and Kaplan, Beige Book, analyst comment, updates prices) By Karen Brettell NEW YORK, April 14 (Reuters) - The dollar dipped to three-week lows on Wednesday as Treasury yields held below recent highs, reducing the relative attractiveness of the U.S. currency. The dollar has gained this year as Treasury yields rose on expectations of faster growth and higher inflation. That trade has paused this month, however, with yields stabilizing below one-year highs reached last month. “The whole pro dollar trade is based upon the yield story and given the fact that the yield story has backed off the highs, the dollar has pretty much done the same thing,” said Boris Schlossberg, managing director of FX strategy at BK Asset Management in New York. “Until the bond market gets the
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NEW YORK (Reuters) - The dollar dipped to three-week lows on Wednesday as Treasury yields held below recent highs, reducing the relative attractiveness of the U.S. currency.
FILE PHOTO: U.S. one dollar banknotes are seen in front of displayed stock graph in this illustration taken February 8, 2021. REUTERS/Dado Ruvic/Illustration/File Photo
The dollar has gained this year as Treasury yields rose on expectations of faster growth and higher inflation. That trade has paused this month, however, with yields stabilizing below one-year highs reached last month.
“The whole pro dollar trade is based upon the yield story and given the fact that the yield story has backed off the highs, the dollar has pretty much done the same thing,” said Boris Schlossberg, managing director of FX strategy at BK Asset Management in New York.
Wall Street Aims To Open Broadly Up
Asian shares finished broadly up, while European shares are trading mostly higher.
Early signs from the U.S. Futures Index suggest that Wall Street might open broadly up.
As of 7.55 am ET, the Dow futures were adding 90.00 points, the S&P 500 futures were progressing 6.00 points and the Nasdaq 100 futures were sliding 20.75 points.
The U.S. major averages all closed in positive territory on Thursday. The Nasdaq jumped 140.47 points or 1 percent to 13,829.31, the S&P 500 rose 17.22 points or 0.4 percent to 4,097.17 and the Dow inched up 57.31 points or 0.2 percent to 33,503.57.
On the economic front, the Labor Department s Producer Price Index or PPI - Final Demand for March will be issued at 8.30 am ET. The Consensus is for an increase of 0.5 percent, while it was up 0.5 percent in the previous month.
Federal Reserve officials pointed to a brighter outlook for the economy at their most recent meeting while agreeing to provide continued support through ultralow interest rates and large monthly bond purchases.
President Biden’s $1.9 trillion pandemic relief package, signed into law March 11, prompted Fed policy makers to lift their forecasts for U.S. economic growth and inflation this year ahead of their March 16-17 meeting. Several of them remarked that the measure could improve the position of small businesses hit by the pandemic, lift consumer spending and contain long-term damage to the labor market.
Still, most of the 18 officials at the meeting expected rates to remain pinned near zero through 2023 and expressed no readiness to reduce the bond purchases last month, according to minutes of the meeting, released Wednesday.
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