Dollar hits one-year high as U.S. yields rise, inflation data on tap
EUR/USD – Euro US Dollar
a 1.1535 +0.0008 +0.07%
GBP/USD – British Pound US Dollar
a 1.3584 -0.0001 -0.01%
USD/JPY – US Dollar Japanese Yen
a 113.56 -0.04 -0.04%
The dollar hit a one-year high on Tuesday on expectations the U.S. Federal Reserve will announce a tapering of its massive bond-buying program next month, and as concerns over soaring energy prices also sent investors to the safe-haven greenback.
Investors will watch U.S. Consumer Price Index data on Wednesday and retail sales data on Friday for further clues as to when the Fed might begin winding down stimulus.
September 2021 CPI data are scheduled to be released on October 13, 2021, at 8:30 A.M. Eastern Time.
GBP/USD The pound is unlikely to be rescued by the increasing odds of a Bank of England rate hike as the currency may struggle to escape the clutches of stagflation just as the impact of Brexit begins to emerge
JPY/USD The spike in U.S. yields prompted investors to dump the Japanese yen versus the dollar, resulting in the second-biggest daily fall in the Japanese currency on Monday.
If the price continues climbing, the next critical level for the pair is 114.03.
Oil steadies as energy crunch stirs up volatility, recovery concerns
IMF lowers global growth outlook
China rust-belt province warns of shortages in energy crisis
Gold Up, Steadies as Fed Taper Expectations Widen
A: 1761.34 + 0.72 + 0.005%
Surging energy prices and wide expectations that the U.S. Federal Reserve will soon begin asset tapering contributed to the dollar’s rally.
IMF said that the global economy is losing momentum.
Democratic controlled US House of Representatives gave final approval on Tuesday, temporarily raising gov’t borrowing limit to $28 Trillion.
- Market Week Ahead: Nasdaq 100, Fed, Tech Earnings, Volatility ReturnsGlobal risk appetite sharply deteriorated this past week as the Volatility Index (VIX), which is the market’s preferred ‘fear gauge, closed at its highest since early December. The most immediate item threatening market sentiment is a hawkish Federal Reserve. A combination of quantitative tightening and rate hike bets are bringing up front-end Treasury yields, or […]
- Markets to Watch This Week: Nasdaq 100, US Dollar,BoJ and moreThere continued to be hesitancy in global market sentiment. Wall Street started off 2022 on a sour note, though the second week was less painful. Nasdaq 100 futures were little changed. This is as Dow Jones and S&P 500 futures declined about 0.8% and 0.3% respectively. European and Asia-Pacific benchmark stock indices did not fare any better. Global monetary policy tightening […]
- Market Week Ahead: Inflation Data, Bitcoin, Powell Testimony, and moreEven though market sentiment started off 2022 on a sour note, there were clear winners and losers on Wall Street. Dow Jones futures declined about 0.1% this past week, while the tech-heavy Nasdaq 100 sank about 4.35% in the worst performance since February. The coming week will bring closely followed inflation figures, while Federal Reserve Chair Jerome Powell […]
- Market Week Ahead: Monetary Policy Meeting, Retail Sales, etc.The broad US dollar remained under pressure on Friday and will end this week on a bearish note as investors digest the Bank of England’s (BOE) unexpected interest rate hike and the European Central Bank’s (ECB) shift to a more hawkish attitude. Looking ahead to the coming week, the series of retail sales, the minutes of the […]
- Markets Week Ahead: Nasdaq 100, US Dollar, Gold, Euro, British Pound, Fed and moreMarket mood recovered this past week around the world. On Wall Street, the Nasdaq 100 and S&P 500 gained 3.82% and 3.65% respectively. Across the Atlantic, the Euro Stoxx 50 and FTSE 100 climbed 2.95% and 2.62% respectively. In the Asia-Pacific region, the Nikkei 225 climbed 0.89% while Australia’s ASX 200 jumped 4.05%. Volatility was crushed, with the VIX market ‘fear gauge’ sinking about 39% in the worst week […]