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Daily Forex News By XtreamForex

The Dollar Rise, nonetheless, Three-week Low as Investors buy Fed’s Aggressive Attitude

The Dollar was high on Thursday morning in Asia, however, was holding near a three-week low.

The U.S. Fed is headstrong towards keeping the interest rates low lead U.S. bond yields to retreat from March Surge.

The U.S. Dollar Index that traces the greenback inched up 0.01% to 91.685, against a basket of other currencies.

The USD/JPY pair slightly down 0.04% to 108.87.

The AUD/USD pair slightly down 0.12% to 0.7711, on the other hand, NZD/USD pair edged up 0.07% to 0.7143.

The USD/CNY pair inched high 0.16% to 6.5398 while the GBP/USD pair slightly down 0.07% to 1.3769. China is going to release GDP, Industrial production, and fixed asset investment data on Friday.

The Euro gained 2.2% in April, that’s the highest in four weeks, trading at 1.19845.

The Fed is stubborn to keep accommodative rates that helped in maintaining U.S. bonds. The Benchmark ten-year U.S. bond yields calmed to 1.636% on Thursday but were well beneath the 14-month height of 1.776% hit in late March.

Regardless of this fraction of Investors remained worried that might be the fed could change its statement later in 2021 should inflation readings jump higher than expected.

Fed Chairman Jerome Powell said that the Fed will bring down its monthly bond purchases before perform to an interest rate increase in his speech at the Economic Club of Washington on Wednesday.

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The Dollar Elevated after Treasuries Enfeeble Current Strength

The U.S currency was high on Friday Morning in Asia however, was ready to call off the week with a terrible successive weekly drop in 2021.

The U.S. Dollar Index traces the greenback slightly up by 0.10% to 91.713 against the basket of other currencies.

The USD/JPY Pair Slightly Up by 0.06% to 108.81.

The AUD/USD pair inched down 0.16% to 0.7738 with NZD/USD pair slightly down 0.10% to 0.7162.

The USD/CNY pair slightly up by 0.12% to 6.5296. The Economic growth doesn’t grow as per the expectation; The Yearly data Chinese According to the Chinese Economic Data mentioned that the GDP for the first quarter expand 18.3% and 0.6% yearly and quarterly in March.

The GBP/USD Pair slightly down 0.14% to 1.3767.

The Benchmark 10-Year Treasury Yield declined to a one-month low of 1.528% in the last session, Despite Thursday’s more than expected U.S retail sales and in initial jobless claim data.

San Francisco Fed President Mary Daly mentioned on Thursday that the U.S. Economy is yet not close to making considerable progress with regards to the Central bank’s goals of 2% inflation and full employment when it will commence contemplating reducing its support for the economy.

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Dollar Inclined, however, persisting near one-month low as U.S. Yields Rebound

The Dollar was high on Monday morning in Asia however persists almost a one-month low as Treasury Yields lingered near their lowest levels in five weeks following the U.S. Federal Reserve recapitulate its perception of an increase in inflation will not be permanent.

Improved risk sentiment in the middle of the rally in global shares to record highs also complete gains for the U.S. currency.

The U.S. Dollar Index traces the greenback slightly up by 0.11% to 91.648 against the basket of other currencies.
The USD/JPY pair inched down 0.11% to 108.66.

The AUD/USD pair was slightly up by 0.01% to 0.7734.

The NZD/USD pair slightly down 0.01% to 0.7140.

The USD/CNY pair slightly up by 0.07% to 6.5249.

The GBP/USD pair slightly up by 0.05% to 1.3837.

The 10-year Treasury yield descended to 1.5280% during the last week from a more-than-one-year high of 1.7760% at the End of the previous month.

The U.S Economy is “ready to rip”, said Fed Governor Christopher Waller at CNBC on Friday. The economy is ready to take off, nonetheless not at the fastest pace that the central bank should start tightening policy.

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Dollar Tumbled, Euro Inclined as Vaccination Rollout

The U.S. Currency declined on Tuesday Morning in Asia, persisting near a six-week low as the Euro inclined after the rallying COVID-19 vaccine rollout.

The U.S. Dollar Index that traces the greenback edged down 0.14% to 90.927 against a basket of other currencies.

The USD/JPY pair slightly up by 0.02% to 108.18 after the Dollar fell to its lowest 107.975 Yen.

The AUD/USD pair was high 0.48% to 0.7794 after hitting a one month high of 0.7784 on Monday as the Reserve Bank of Australia released the minutes from its latest policy earlier in the day.

The NZD/USD pair inclined 0.42% to 0.7210.

The USD/CNY pair declined 0.21% to 6.4949.

The GBP/USD pair slightly up 0.10% to 1.3998.

The Dollar is losing its grip due U.S. Bond yields have lingered below a 14-month high touched last month.

The euro inclined to $1.2038 touched a six-week high of $1.2048 on Monday on the other hand the British Pound gained 1% nightly, its second-biggest daily gain in this year as of now.

Fraction of Investors believes that the euro likely came from announcements that the European Union has obtained an additional 100 million doses of COVID-19 Vaccine by BioNTech SE and Pfizer Inc.

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The Dollar Declined Amid ECB Policy Decision

The Dollar Declined on Thursday Morning in Asia, remaining near multi-week lows as declining gains in U.S. Treasury yields shrunk the U.S. Currency’s interest-rate benefits.

The U.S Dollar Index traces the greenback against a basket of other currencies slightly down by 0.03% to 91.105.

The USD/JPY pair edged down by 0.10% to 107.94, near a seven-week low.

The AUD/USD pair slightly down by 0.105 to 0.7743 with NZD/USD pair was down 0.30% to 0.7190.

The USD/CNY pair edged down by 0.04% to 6.4874.

The GBP/USD pair inched down 0.01% to 1.3928.

Investors are keen to watch the European Central Bank (ECB) policy decision, which will be official later in the day. Any positive verdicts from the central bank about the economic outlook are mostly expected to boost the euro. The single currency was trading at $1.2043, not far from a record level set on March 3.

The Bank of Canada shows the sign of start increasing interest rates in late 2022 after trimming the speed of bond purchases, apparently will become the first group of the central bank to move towards withdrawing unparalleled stimulus. The CAD jumped to a six-week high on Wednesday.

The AUD and NZD dollar also traded near one-month highs against the dollar, countries make their central banks more likely to follow the Reserve Bank of Canada’s footsteps.

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Dollar Decline, Investors contemplate ECB’s Warning

The U.S. Currency fell on Friday morning in Asia as investors anticipated for U.S. Federal Reserve meeting in the coming week.

The U.S. Dollar Index Futures that traces the greenback declined 0.17% to 91.170 against a basket of other currencies.

The USD/JPY pair slightly down 0.06% to 107.90.

The AUD/USD pair inched up 0.37% to 0.7735.

The NZD/USD pair slightly up 0.14% to 0.7182.

The USD/CNY pair edged up 0.07% to 6.4958.

The GBP/USD pair was slightly up 0.19% to 1.3862.

The Fed is going to announce the policy verdicts on Apr. 28, instantly when investors hoping that might keep its ongoing policy the same. Though, investors keeping eyes wide open for any clue by Fed.

Although investors will be on the prospect for any remarks about ascending monetary easing in the future,
Fed Chairman Jerome Powell is expected to reform European Central Bank (ECB) President Christine Lagarde’s indication that anticipation of keeping the bond purchases narrow because of the announcement of ECB policy on Thursday.

Germany will release April’s manufacturing and service Purchasing Managers Indexes (PMIs) later in the day.

The U.S. will also release its April’s manufacturing and services PMI later in the day with new home sales in March.

Investors are being on the positive side as the Dollar and Euro are surely going to take a big turn and vigorously waiting for the Fed’s decision.

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The Dollar Elevated but Endures near Seven-week low Amid Fed policy Decision

The dollar was up on Tuesday morning in Asia, although, stayed near multi-week lows as U.S. Treasury yields sink. Most investors consolidate positions ere the U.S. Federal Reserve’s most advanced policy decision.

The U.S. Dollar Index traces the greenback slightly up by 0.14% to 90.907 against the basket of other currencies.

The USD/JPY pair slightly up 0.15% to 108.25, with U.S. currency climbing up 0.1% with ongoing inclination from Friday’s seven-week low of 107.48.

The Bank of Japan kept its interest rates the same at 0.10% at the time of releasing the policy decision earlier in the day with the expectations of Investors.

The AUD/USD pair inched down 0.12% to 0.7790.

The NZD/USD pair inched down 0.14% to 0.7224.

The USD/CNY pair slightly up 0.03% to 6.4863.

The GBP/USD pair edged down 0.06% to 1.3888.

The euro dropped down 0.1% to $1.2078 but remained near the one-month high of $1.2117 hit on Monday.

The dollar has declined nearly 3% since late March 2021, as U.S. Treasury yields remain untouched in restricted areas after escaping from their 14-month high of 1.7760%. The benchmark 10-year U.S. Treasury yield hovered near 1.58% on Tuesday.

Investors are looking forward to the Fed’s decision on Wednesday, keenly waiting for the comments from Chairman Jerome Powell. Mostly the questions will be in regards to enhanced economic outlook justifies removal of monetary easing by the central bank.

The dollar has declined nearly 3% since late March 2021, as U.S. Treasury yields remain untouched in restricted areas after escaping from their 14-month high of 1.7760%. The benchmark 10-year U.S. Treasury yield hovered near 1.58% on Tuesday.

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Dollar Elevated with Expectations on Fed Policy Decision

The Dollar inclined on Wednesday Morning in Asia after the U.S. Federal Reserve’s announcement of latest policy decision and Joe Biden’s spoke in front of a collective assembly of Congress, is going to happen later in the day.

The U.S. Dollar Index traces the greenback against a basket of other currencies edged up 0.10% to 90.980.

The USD/JPY pair inched up 0.14% to 108.83 as Japan showed a 5.2% gains which were better than the expectation in March retail sales yearly earlier in the day, but the nation still in a worrisome situation due to the rapid increase in COVID-19 cases and Bank of Japan’s confession on Tuesday that inflation is not going to reach its key 2% target through early 2023.

The AUD/USD pair declined 0.24% to 0.7745. Australia’s Consumer Price Index (CPI) data released earlier in the day, rising 0.6% quarterly and 1.1% yearly during the first quarter of 2021.

The NZD/USD pair was stable at 0.7207.

The USD/CNY pair edged up 0.05% to 6.4863.

The GBP/USD pair declined 0.26% to 1.3876.

Even Though the dollar recover from its lowest level since March 3 hit on Monday disbelief abide on whether its downward trend since late March is over.

Receding odds on whether the Fed will start putting the foundation for a future policy tightening promptly when its hands down its decision, also contributed to the U.S. currency’s decline.

Although the central bank is anticipated to maintain its aggressive policy, some investors suggested that signs of rising inflation expectations could nudge it to reject the position sooner than expected. The break Even inflation rate rose above 2.40%, its highest level since 2013, on Tuesday.

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Dollar Declined, Euro Elevated as Fed kept Dovish Monetary Policy

The Dollar declined on Thursday morning in Asia, as the U.S. Federal permit in its most advanced policy decision the global reflation trade with persistently aggressive monetary policy.

The U.S. Dollar Index traces the greenback against a basket of other major currencies slightly down 0.08%.

The USD/JPY pair slightly down 0.01% to 108.58. A holiday in Japan could help reduce losses during the Asian session.

The AUD/USD pair Edged up 0.04% to 0.7792.

The NZD/USD pair Edged up 0.08% to 0.7258.

The USD/CNY pair inched down 0.11% to 6.4702.

The GBP/USD edged up 0.15% to 1.3954.

The dollar’s failure was the euro’s gains, with the only currency hitting its highest level against the dollar following late February 2021 while deciphering major trendline resistance at $1.2114.

The Fed preserved its interest rate constant at 0.25% as it delivered its policy decision on Wednesday as per investor expectations. Fed Chairman Jerome Powell stating it was “not time yet” and that employment still had a long way towards recovery.

USD/TRY slightly higher to 8.1972, before the first public policy presentation by Turkey’s new central bank Governor Sahap Kavcioglu.

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Xtreamforex Technical Analysis : 30-04-2021

Pound
(1.3947) has been rising slowly. A break above 1.40 is needed for the pair to turn bullish and rise further towards 1.41-1.42 in the longer run.

For now watch a rise to 1.40 to see if it manages to break above or faces rejection from there.

RESISTANCE LEVEL: R1: 1.39573, R2: 1.39657, R31.39794 PIVOT POINT: 1.39488 SUPPORT LEVEL: S1: 1.39352, S2: 1.39215, S3: 1.39131.

Euro (1.2118) dipped from 1.2150 but the decline is likely to be limited to 1.2090 for the near term before the Euro again starts to rise. Watch price action near 1.2090.

RESISTANCE LEVEL: R1: 1.21325, R2: 1.21427, R3: 1.21564 PIVOT POINT: 1.21223 SUPPORT LEVEL: S1: 1.21086, S2: 1.20949, S3: 1.20847, S3: 1.20745.

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Dollar Constant as Traders Support for more U.S. Data

After its recent bounce on Monday, the Dollar straightened as investors made a cautious start to a week packed with central bank meetings and U.S. economic data, anticipating evidence on the global inflation outlook and policymakers’ responses.

Trade was reduced by holidays in Japan, China, and Britain, which kept a cover-up on volatility, leaving the U.S. Currency to trade where it completed after a Friday leap.

It held at $1.2040 per euro and crept to a three-week high of 109.66 yen.

The U.S. Dollar Index traces greenback versus a basket of other currencies slightly up 0.07% to 91.330.

The USD/JPY pair was high 0.229% to 109.59.

The AUD/USD pair edged up 0.05% to 0.7720.

The NZD/USD pair elevated 0.22% to 0.7176.

The USD/CNY pair inched up 0.05% to 1.3821.

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Dollar High as regardless of Surprise fall in U.S. Manufacturing Data

The dollar was high on Tuesday morning in Asia as an unexpected slowdown in U.S. manufacturing growth cut off Investor bets on a booming U.S. economy giving the U.S. currency a boost.

The U.S. Dollar Index traces the greenback against a basket of other currencies inclined 0.22% to 91.125.

The USD/JPY pair was up 0.22% to 109.28.

The AUD/USD pair was down 0.21% to 0.7744.

The NZD/USD pair inched down 0.33% to 0.7174.

The USD/CNY pair was steady at 6.4735.

The GBP/USD pair was down 0.27% to 1.3872.

Japanese and Chinese markets remained closed for a holiday.

The U.S. Institute of Supply and Management ISM Manufacturing Purchasing Managers Index (PMI) released on Monday, was a lower-than-expected 60.7 for April.

The euro rose 0.3%, as investors understood economic data from the region. The German Manufacturing PMI was 66.2 for April, while the Eurozone’s manufacturing PMI was 62.9.

Investors are now looking to further data to be released later in the week including the U.S Trade balance and the April U.S. employment report which includes non-farmer payrolls.

Benchmark ten-year U.S. Treasury yields dropped 2.5 basis points late as the data baffled, and like New York, Fed President John Willian emphasized that the economic recovery so far is “not nearly enough” to harden monetary policy.


Read More : Daily & Weekly Analysis on XtreamForex
 
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The Dollar Climbs Highest in over Two Weeks

The dollar was up on Wednesday morning in Asia as concerns over U.S. Treasury Secretary Janet Yellen’s comments about increasing interest rates.

The U.S. Dollar Index traces the greenback versus a basket of other currencies was high 0.31% to 91.210.

The USD/JPY pair was steady at 109.32.

The AUD/USD pair elevated 0.35% to 0.7732.

The NZD/USD pair gained 0.38% to 0.77196.

The New Zealand dollar was supported by local employment data, including the employment change that increased 0.6% quarterly during the first quarter of 2021.
The USD/CNY pair was steady at 6.4735.

The GBP/USD pair inched up 0.15% to 1.3906 as investors expect the Bank of England policy decisions that will be delivered on Thursday.

This jump in the dollar came in the wake of comments from U.S. Treasury Secretary Janet Yellen inferring the requirement of increased rates in the future.

Yellen said at a virtual meeting on Tuesday “It may be that interest rates will have to rise somewhat to make sure that our economy doesn’t overheat,” “Even though the additional spending is relatively small relative to the size of the economy, it could cause some very reasonable increases in interest rates.”

Yellen later tried to reverse the importance of these remarks, but the mere mention of U.S. tightening frightened a market that has become so affected by the Federal Reserve’s monetary stimulus.

So far, Federal Reserve Chair Jerome Powell has disputed the labor market is still far short of where it needs to be to start talking of tapering asset buying.
Three more Fed officials are speaking later on Wednesday providing the opportunity for further market-moving comments.

Read More : Daily & Weekly Analysis on XtreamForex
 
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World Stocks on a Progressive note for First Weekly Gain

World stocks managed for their first weekly gain in three in the middle of the flood in commodity prices on the other hand traders supported the U.S. jobs report later on Friday that could provide clues on when the Federal Reserve will ease back on monetary stimulus.

European stocks opened higher, with the pan-European STOXX 600 index scoring a record as powerful data from Germany and other major economies added to hopes of a swift recovery from the pandemic shock.

By midday in London, German DAX climbed 1.3%.

France’s CAC 40 scored its highest since November 2000 Britain’s.

FTSE 100 breached the 7,100 marks, up 0.7% on the day.

MSCI’s benchmark for global equity markets, which tracks stocks in 50 countries, slightly up about 0.2%, on course for a 0.5% gain this week.

Its broadest index of Asia-Pacific shares outside Japan lifted about 0.4% on Friday, while Japan’s Nikkei increased about 0.2%.

China’s blue chips finished at 1.3% lower on the day.

Iron ore futures jumped to a record high on Friday, while crude oil rose.

Wall Street investors piled into economically-sensitive stocks on the reflation trade, driving the Dow Jones Industrial Average to a record close on Thursday.

The Dow climbed 0.9%, the S&P 500 gained 0.8% and the Nasdaq Composite added 0.4%.

S&P futures led to further gains 0.3% higher on Friday.

The Russell 1000 Value index increased 0.8%, outpacing the Russell 1000 Growth index, which raised 0.5%.

Read More : Daily & Weekly Analysis on XtreamForex
 
Dollar Soothes after Beating U.S. Jobs Report

The U.S. dollar aided losses near 2-1/2 month lows on Monday as a bitter U.S. employment report advised investors to unwrap their increasing long positions in the U.S currency.

The United States developed a little more than a quarter of the jobs that economists had anticipated last month and the unemployment rate suddenly jumped higher, projecting uncertainties that the Fed would judge improving the timeline of tightening policy in the coming months.

The Dollar Index traces the greenback against six opponents, attained at 90.305, up 0.2% on the day, after dipping as low as 90.128 for the first time since Feb.

However, the dollar’s losses were skipped due to more specific U.S. Treasury yields, which were up nearly 2 bps in early London trading at 1.60%.

The Sterling was the winner among the most traded currencies, rising 0.5% to $1.4067 the highest since Feb. 25.

Such a plebiscite requires the reinforcement of the UK government in London and Prime Minister Boris Johnson has managed out keeping another vote, mentioned that the country faced more constraining difficulties such as the recovery from the corona virus pandemic.

The euro stabled 0.1% to $1.2142, earlier touching the highest since Feb. 26 at $1.2177.

Read More : Daily & Weekly Analysis on XtreamForex
 
Dollar Up, Commodity Currencies Restrict Gains

The dollar gains in early European trade Tuesday, however, gains were completed by the strength of commodity currencies on the back of rises in the prices of oil and base metals.

The U.S. Dollar Index traces the greenback against a basket of other currencies crawled down 0.06% to 90.237 by 11:53.

The USD/JPY pair slightly up 0.10% to 108.89.

The AUD/USD pair slightly up 0.03% to 0.7833 ahead of Australia’s federal budget, due to be handed down later in the day.

The NZD/USD pair trimmed down 0.14% to 0.7264.

The USD/CNY pair inched up 0.18% to 6.4270.

China’s CPI just dropped expectations, contracting 0.3% monthly but rose 0.9%Yearly. The PPI increased a 6.8% year-on-year.

The GBP/USD pair edged down 0.01% to 1.4118.

Investors are looking forward to inflation data from the U.S., including core CPI, that will be released on Wednesday. The data will measure the level of inflationary pressure and could accelerate Treasury yields up, possibly it could give the greenback a lift.

Prices for commodities including crude oil, copper, and steel are expected to rise further, increasing concerns about runaway inflation.

The dollar was trading at $1.2097 against its Canadian counterpart.

The greenback’s weakest level in more than three years. It was also near a two-week low against the Mexican peso.

Demand for commodities is anticipated to grow continuously because the improved COVID-19 vaccinations could lead to a growing economic viewpoint in more countries.

Read More : Daily & Weekly Analysis on XtreamForex
 
Dollar slightly Up; Inflation Data Appears Healthy

The dollar is a gainer with up in early European trade Wednesday although, remains near recent lows ahead of a key U.S. inflation release.

The Dollar Index, which traces the U.S. Dollar versus a basket of six other currencies, was up 0.2% at 90.287.

EUR/USD traded 0.2% lower at 1.2127.

USD/JPY elevated 0.2% to 108.83.

AUD/USD declined 0.5% to 0.7804.

NZD/USD sank 0.6% to 0.7234, with the commodity currencies reducing off after reading recent ten-week tops.

Investors now anticipate the latest U.S. consumer inflation data, due at 8:30, which is expected to show a 3.6% lift in yearly prices, promoted by last April’s low base. This would be the highest jump since September 2011.

On the other hand, equity markets have started to fuss about what a high inflation number could mean in terms of Federal Reserve policy continuing progressive.

Currency traders appear to have been soothed by repeated promises of patience from Fed speakers as the dollar remains at low levels.

St. Louis Federal Reserve President James Bullard said on Tuesday he expects inflation could linger as high as 2.5% next year, while Fed Governor Lael Brainard said weak labor data last week shows the recovery has a long way to run.

GBP/USD slipped 0.1% to 1.4129, after the united kingdom economy contracted 1.5% in the first quarter of the year, in line with the Bank of England’s latest forecast.

Read More : Daily & Weekly Analysis on XtreamForex
 
Dollar Elevated; Fed in Limelight on Inflation Surge

The dollar slightly higher in early European trade Thursday, with the U.S. currency supported by concerns of an earlier than expected Federal Reserve response to inflationary pressures in the wake of the worryingly large jump in U.S. consumer prices.

The U.S. Dollar Index Traces the greenback against a basket of six other currencies, was higher 0.1% at 90.775, around its highest level in a week.

EUR/USD traded 0.1% higher at 1.2075, after dropping around 0.6% the previous session.

GBP/USD was flat at 1.4052, and
USD/JPY Elevated 0.1% at 109.73, close to its strongest level in five weeks.

AUD/USD dropped 0.2% to 0.7712, while
NZD/USD climbed 0.1% to 0.7160, availing from additional plans to open the New Zealand economy.

The consumer price index strengthened 4.2% in April from a year ago, according to data released on Wednesday, well above consensus forecasts for 3.6% and climbing to its highest rate since the eve of the 2008 financial crisis.

Benchmark 10 year U.S. Treasury yields climbed to a five-week high above 1.70% overnight, enhancing the appeal of dollar-denominated assets, but have since trimmed back down to 1.685%.

Fed speakers have been very keen to make clear that they expected a bounce in prices as last year’s collapse in oil prices and a nascent economic recovery worked their way through the system, but they saw this increase as temporary.

Read More : Daily & Weekly Analysis on XtreamForex
 
Dollar Topple; Inflation Concerns Indicate Substantial Week

The Dollar Declined in early European trade on Friday after the one-week gain because traders considerably seem to be fine with the latest inflation data that could impact on Federal Reserve Policy.

The Dollar Index, which traces the U.S. currency against a basket of six other currencies was declined 0.2% at 90.532.

EUR/USD was traded 0.3% higher at 1.2109.

GBP/USD was high 0.1% at 1.4068.

USD/JPY was declined 0.1% at 109.39.

AUD/USD elevated 0.2% to 0.7744.

NZD/USD elevated 0.3% to 0.7192.

The release of Factory gate price data in the U.S. on Thursday with the Producer Price Index Inclined by 0.6% in April and the Annual Figure climbed by 6.2% which was the highest yearly rise since the series was renewed in 2010.

This powerful data add to Wednesday’s remarkable rise in consumer price. Submitting inflationary pressure is building up in the United States because of the vaccine rollouts ready to reopen of a rupturing economy.

Benchmark 10- Year U.S. Treasury yields declined after the PPI data and now trade around 1.65%.

For today, the centre of attraction will be the U.S. retail sales for April, which should continue to persist strongly after the impressive 9.7% rise in March, as well as industrial production numbers and consumer sentiments for May.

Read More : Daily & Weekly Analysis on XtreamForex
 
Dollar Declined as Investors speculate on the U.S. Interest Rate Staying lower

The dollar slipped on Tuesday morning in Asia, hitting a six-year low against its Canadian counterpart and hanging close to multi-month lows against European currencies because investors are expecting that up bets the U.S. Federal Reserve would not lift interest rates.

The U.S. Dollar Index traces the greenback against a basket of other currencies slightly down 0.05% to 90.097.

The USD/JPY pair slightly up 0.03% to 109.22, with Japan’s slow COVID-19 vaccination rate and dollar weakness securing the duo into a narrow range.

The yen also fell against the pound and the riskier currencies as data released earlier in the day said that the Japanese economy contracted more than expected during the first quarter of 2021, as its GDP contracted 5.1% yearly and 1.3% quarterly.

The AUD/USD pair was high 0.35% to 0.7791, with the Reserve Bank of Australia releasing the minutes from its latest meeting earlier in the day.
The NZD/USD pair gained 0.47% to 0.7234.
The USD/CNY pair slightly down 0.17% to 6.4278.
The GBP/USD pair was high 0.27% to 1.4173, its most powerful level since February 2021, as the U.K. begins to get out from the stringent COVID-19 lockdown.
The dollar was at $1.2167 against the euro, close to its weakest level since Feb. 26, 2021. The Canadian dollar climbed to a six-year high of C$1.2045 against its U.S. counterpart, supported by a rise in oil prices.

On Monday, Dallas Fed President Robert Kaplan repeated his view that he does not expect interest rates to rise until 2022, thus sparking a further drop in bets that inflationary pressure could force the central bank to act sooner than expected.

Other Fed officials are expected to speak throughout the week and investors also await the release of the minutes from the Fed’s latest meeting, due on Wednesday.

Investors will examine the minutes once they are delivered for evidence as to the Fed’s monetary policy direction for the rest of 2021. However, an agreement is building that the Fed will continue with its current negative policy over the assumption that any acceleration in inflation is temporary, in turn keeping the dollar on a downward trend.

Read More : Daily & Weekly Analysis on XtreamForex
 
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