🔥 Premium AI-powered Stock Picks from InvestingPro Now up to 50% OffCLAIM SALE

FOREX-Dollar sluggish but firm, oil bounce helps commodity currencies

Published 23/06/2017, 01:15 pm
© Reuters.  FOREX-Dollar sluggish but firm, oil bounce helps commodity currencies
EUR/USD
-
USD/JPY
-
USD/CAD
-
NZD/USD
-
USD/NOK
-
BARC
-
DX
-
CL
-
DXY
-

* Dollar drifts, next week's US data awaited for inflation cues

* Canadian dollar, Norwegian crown holds to gains after oil bounce

* Pound hits 3-day high after hawkish comments from BoE's Forbes (Updates prices, adds details and quotes)

By Shinichi Saoshiro

TOKYO, June 23 (Reuters) - The dollar was little changed on Friday as traders marked time ahead of next week's U.S. inflation-linked indicators, while commodity currencies such as the Canadian dollar held to gains after crude oil prices bounced.

The dollar index against a basket of major currencies was effectively flat at 97.492 .DXY .

The index peaked at a one-month high of 97.871 on Tuesday after the Federal Reserve hiked interest rates last week and left the door open for further monetary tightening later in the year. But it has been stuck in a tight range since, awaiting fresh catalysts.

"While the market was able to draw incentives from the Fed last week, there really were not a lot of factors for the dollar to move on this week in the absence of major indicator releases and political events," said Shin Kadota, a senior strategist at Barclays (LON:BARC) in Tokyo.

"But inflation is likely to be the theme that moves currencies next week which will see the release of various U.S. indicators. They will be key as this week's slump in crude oil has clouded the U.S. inflation outlook."

U.S. data due next week include the June consumer confidence indicator, pending home sales, crude oil inventories, revised first quarter GDP and the PCE price index. ECONUS

"While most U.S. indicators bear watching, what really matters for the dollar are wages and inflation-related data, culminating with the non-farm payrolls in two week's time," said Makoto Noji, a senior strategist at SMBC Nikko Securities.

The dollar was flat at 111.320 yen JPY= . It had scaled a near one-month peak of 111.790 on Tuesday before edging down in tandem with U.S. yields, which were nudged lower by falling oil prices. The greenback was still on track for a gain of 0.4 percent this week.

The euro was also steady, at $1.1158 EUR= . It was poised to lose about 0.4 percent this week.

Commodity-linked currencies held to significant gains made overnight following a rebound in crude oil prices from 10-month lows.

The Canadian dollar was flat at C$1.3223 CAD=D4 per dollar after rallying 0.75 percent on Thursday.

The loonie also received a helping hand from solid domestic retail sales which boosted expectations for an interest rate hike in July from the Bank of Canada. CAD/

The Norwegian crown was little changed at 8.4887 crowns per dollar NOK= after rising about 0.5 percent overnight. The crown was also supported as Norway's central bank lifted its rate forecasts for 2017 and 2018 and said a rate cut was no longer likely. pound was 0.1 percent higher at $1.2700 GBP=D3 , its strongest in three days, as it rode momentum gained late on Thursday after Bank of England policymaker Kristin Forbes said "lift-off" of British interest rates should not be delayed any longer. signals from top BoE officials this week, including those by Governor Mark Carney who said it was not the right time to hike rates, have sent sterling on a roller coaster ride. GBP/

The currency has gone from a high of $1.2814 on Monday to a low of $1.2589 on Wednesday, its weakest in two months.

The Australian dollar was up 0.1 percent at $0.7547 AUD=D4 and the New Zealand dollar was down 0.1 percent at $0.7258 NZD=D4 .

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.