FOREX-Fed rhetoric restrains dollar as traders eye inflation Reuters 3 hrs ago By Tom Westbrook Graphic: World FX rates https://tmsnrt.rs/2RBWI5E By Tom Westbrook SINGAPORE, May 12 (Reuters) - The U.S. dollar hovered near its lowest levels of the year on Wednesday as traders hung on to bets that the Federal Reserve would remain steadfast in its easy policy settings ahead of data expected to show a sharp rise in annual U.S. inflation. Analysts forecast figures due at 1230 GMT to show a 3.6% lift in year-on-year prices, boosted by last April s low base. The month-on-month forecast is for a modest 0.2% rise. Higher numbers might add pressure on the Fed to bring forward rate rises, a worry which has contributed to a selloff in rate-sensitive tech shares this week. But currency markets have been soothed by repeated promises of patience from Fed speakers and the dollar has been pressured by gains in commodity currencies. The greenback touched its weak
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EUR/USD Forecast: Sell the rumor, buy the fact? Why US inflation data may trigger a rallyANALYSIS |
5/12/2021 6:53:22 AM GMT
EUR/USD has been under pressure as the dollar benefits from safe-haven flows.
All eyes are on US inflation, which is set to spark volatility.
Wednesday s four-hour chart is painting a bullish picture.
Inflation is coming – perhaps, but it could already be well in the dollar s price, resulting in traders selling the greenback and potentially sending EUR/USD to new highs.
A dark mood has gripped markets. The main reason is the fear of rising prices that would cause the Federal Reserve to raise interest. A long list of officials at the world s most powerful central bank has reiterated the message that price rises are transitory and would subside after a few months. Investors remain in disbelief.
FOREX-Fed talk subdues dollar as inflation remains focus Reuters 5/12/2021
Popular Searches Cryptocurrency ether hits new record high at $4,358.38 Graphic: World FX rates https://tmsnrt.rs/2RBWI5E
By Ritvik Carvalho
LONDON, May 12 (Reuters) - The U.S. dollar hovered above a 2-1/2-month low versus major peers on Wednesday, as traders hung on to bets that the Federal Reserve would remain steadfast in its easy policy settings ahead of data expected to show a sharp rise in annual U.S. inflation.
Analysts forecast figures due at 1230 GMT to show a 3.6% lift in year-on-year prices, boosted by last April s low base. The month-on-month forecast is for a modest 0.2% rise.
Fed talk keeps dollar tied as focus remains on inflation
The U.S. dollar hovered above a 2-1/2-month low versus major peers on Wednesday, as traders hung on to bets that the Federal Reserve would remain steadfast in its easy policy settings ahead of data expected to show a sharp rise in annual U.S. inflation.
Analysts forecast figures due at 1230 GMT to show a 3.6% lift in year-on-year prices, boosted by last April’s low base. The month-on-month forecast is for a modest 0.2% rise.
“We further expect that the release would highlight that, in addition to base effects in commodity prices, the U.S. inflation spike is driven by factors with greater staying power that could result in a more persistent inflation overshoot than expected by the Fed at present,” said Valentin Marinov, head of G10 FX research at Credit Agricole.
5/11/2021 12:41:53 AM GMT | By Anil Panchal
USD/CAD bounces off 2017 low amid fresh USD buying.
S&P 500 Futures print mild losses, US Treasury yields pause two-day uptrend.
Mixed sentiment concerning reflation fears and central bank actions join WTI pullback to favor the buyers.
USD/CAD picks up bids near 1.2100 during Tuesday’s Asian session. The Loonie pair refreshed the lowest levels since 2017, not to forget declining for the fourth consecutive day, the previous day.
Although the comparative advantage of the Bank of Canada’s (BOC) tapering backs the USD/CAD sellers, the pair’s latest bounce could be traced from the US dollar recovery amid market confusion. Friday’s optimism towards a sustained easy money policy from the US Federal Reserve (Fed), backed by Nonfarm Payrolls (NFP) debacle, couldn’t last long as traders seek confirmation. It’s worth mentioning that the US Fed policymakers flash mixed signals, with Dallas Fe