🔺 What to do when markets are at an all-time high? Find smart bargains, like these.See Undervalued Shares

FOREX-Dollar poised for weekly losses after Fed minutes

Published 24/02/2017, 04:08 pm
© Reuters.  FOREX-Dollar poised for weekly losses after Fed minutes
EUR/USD
-
GBP/USD
-
USD/JPY
-
DX
-
US10YT=X
-
DXY
-

* Greenback gets no help from Mnuchin tax reform comments

* Sterling poised for winning week as political woes hit euro

TOKYO, Feb 24 (Reuters) - The dollar clawed back some ground on Friday after skidding to a two-week low against the yen, but was still on track for weekly losses after the Federal Reserve meeting minutes disappointed dollar bulls.

The greenback inched 0.1 percent higher to 112.76 yen JPY= but was just off a two-week low of 112.55 plumbed overnight and down 0.2 percent for the week.

The dollar failed to shrug off pressure from the Fed minutes released on Wednesday, which were more dovish than some market participants had expected.

"Market participants were still digesting the FOMC minutes from the January meeting, and there seems to be two different camps in the reading of those minutes - whether they introduced a more hawkish tone, or a more dovish tone - and it appears the doves are winning that battle," said Bill Northey, chief investment officer for the private client group at U.S. Bank in Helena, Montana.

Also weighing on the dollar were new U.S. Treasury Secretary Steven Mnuchin's remarks in his first televised interviews since taking office last week. He told Fox Business Network that any policy steps the Trump administration takes would likely have a limited impact this year. told CNBC that he wanted to see tax reform passed before Congress' August recess, a basic timeline that fit many investors' expectations but disappointed those hoping for more rapid reform and fuller details. been one month now since Trump became U.S. president, and we're still waiting to see what he can do, particularly on tax reform," said Kaneo Ogino, director at foreign exchange research firm Global-info Co in Tokyo.

"In the meantime, no one wants to bid up to buy dollars, and it all depends on U.S. interest rates, which are still soft-ish, so the dollar is still sagging," he added.

The yield on 10-year U.S. Treasuries fell to a two-week low of 2.372 percent US10YT=RR overnight and was last at 2.375 percent, below Thursday's U.S. close of 2.388 percent.

The euro was off this week's lows but remained pressured by fears about anti-European Union rhetoric from French presidential candidate Marine Le Pen ahead of the first round of French elections on April 23, with the second round to come in May.

The euro was on track to shed 0.2 percent for the week against its U.S. counterpart, but was steady on the day at $1.0582 EUR= , well off this week's trough of $1.0494 hit on Wednesday, which was its lowest since Jan. 11.

The euro's struggle gave sterling a tailwind. The pound stood at $1.2550 GBP= , up 1.1 percent for the week.

"We would not be surprised to see GBP/USD retrace to 1.25 but breakouts after long periods of consolidation tend to have continuation," wrote Kathy Lien, managing director at BK Asset Management.

The dollar index, which tracks the U.S. unit against a basket of six major peers, edged down 0.1 percent to 100.970 .DXY , nearly flat for the week.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.