Showing posts with the label The U.S. Dollar

The U.S. Dollar: The U.S. Dollar Pares Losses, Trade Sends Yields Higher. Dollar pares losses as reflation trade sends yields higher Reuters 2-3 minutes A £10 note is seen alongside a US dollar bill. The U.S. dollar pared losses in early European trading after hitting multi-year lows against sterling and the Australian and New Zealand currencies as vaccine progress, expectations for faster economic growth and inflation sent bond yields higher. Yields on 10-year U.S. and German government bonds hit one-year and eight-month highs respectively as traders continued to play reflation trades. The British pound was holding the $1.40 line after reaching 1.4043, its highest since April 2018, as Prime Minister Boris Johnson charts a path out of lockdowns on the back of rapid vaccinations. The Aussie rose as much as 0.5% to an almost three-year high of $0.7908 before letting the dollar come back to 0.7864. The kiwi hit $0.7338, also its best since early 2018, helped by S&

Currencies: The U.S. Dollar. Dollar struggles as U.S. yields soften; Bitcoin soars Reuters 3 minutes A businessman is seen holding out a stack of U.S. banknotes. The U.S. dollar was firmly pinned at a one-week low on Tuesday as an overnight slide in U.S. Treasury yields raised doubts on the outlook for the greenback against the backdrop of a looming U.S. fiscal stimulus package. Investors have pushed up the dollar recently as Democrats moved to fast-track President Joe Biden's $1.9 trillion COVID-19 relief package. But some analysts say massive fiscal spending coupled with continued ultra-easy Federal Reserve monetary policy will ultimately prove to be a dollar headwind. "There has been an impressive pullback in U.S. Treasury yields overnight which is causing the broad-based dollar weakness before the bond auctions this week," said Kenneth Broux, a strategist at Societe Generale in London. In Monday'