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FOREX-Dollar dips before consumer price inflation data

Published 13/04/2021, 05:42 am
© Reuters.
EUR/USD
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USD/JPY
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USD/CHF
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USD/SEK
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DX
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BTC/USD
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* Graphic: World FX rates https://tmsnrt.rs/2RBWI5E (Adds Treasury auction results, comments from Fed's Rosengren, updates prices)

By Karen Brettell

NEW YORK, April 12 (Reuters) - The dollar dipped slightly on Monday as traders awaited highly anticipated U.S. inflation and retail sales data in coming days, and as the Treasury Department saw solid demand for new sales of three-year and 10-year notes.

The dollar has rebounded this year as U.S. Treasury yields rise on expectations of faster economic growth and higher inflation.

U.S. consumer price data for March due on Tuesday is a major economic focus. Investors are betting that price pressures will increase due to increased fiscal and monetary stimulus and as businesses reopen from COVID-19 related closures.

Comparisons with last year are also likely to be strong, due to a drop in inflation a year ago when businesses closed due to the spread of the virus.

"With U.S. data expected to come in strong this week, we believe the dollar's rise can continue," analysts at Brown Brothers Harriman said in a report on Monday.

Retail sales data for March is due on Thursday.

The dollar index =USD fell 0.04% against a basket of currencies to 92.164. It is holding above a three-week low of 91.995 reached on Thursday.

The euro EUR=EBS was little changed on the day at $1.1900.

Treasury yields dipped from session highs but were higher on the day before the Treasury will sell 30-year bonds on Tuesday, and after Monday's auctions saw good demand. US/

Federal Reserve Chairman Jerome Powell said on Sunday that the U.S. economy was at "an inflection point" and looked set for a strong rebound in the coming months, but he also warned of risks stemming from a hasty reopening. Fed President Eric Rosengren also said on Monday that the U.S. economy could see a significant rebound this year thanks to accommodative monetary and fiscal policy, though the labor market still has much room for improvement. BTC=BTSP chopped around the $60,000 level on Monday and is holding just below a record high of $61,782 reached last month.

Sterling GBP=D3 rose 0.22% to $1.3724 as traders cheered the latest phase of the British government's economic reopening plan.

The dollar fell 0.19% to 109.44 yen JPY= versus the Japanese currency.

U.S. dollar net short positions have fallen to their lowest in nearly three years, according to data published on Friday. analysts noted that speculators had cut their net short dollar positions for the 12th consecutive week, which could prove a headwind for further dollar gains.

"At this stage, the dollar has lost all its positioning 'advantage,' having a neutral speculative positioning, which suggests we should no longer see dollar rallies against most G10 currencies exacerbated by the unwinding of USD shorts," they wrote.

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Currency bid prices at 3:19PM (1919 GMT) Description

RIC

Last

U.S. Close Pct Change

YTD Pct

High Bid

Low Bid

Previous

Change

Session

Dollar index

=USD

92.1640

92.2180

-0.04%

2.426%

+92.3310

+92.0070 Euro/Dollar

EUR=EBS

$1.1900

$1.1901

-0.01%

-2.60%

+$1.1919

+$1.1872 Dollar/Yen

JPY=D3

109.4350

109.6300

-0.19%

+5.94%

+109.7650 +109.2500 Euro/Yen

EURJPY=

130.22

130.47

-0.19%

+2.60%

+130.6100 +129.9000 Dollar/Swiss

CHF=EBS

0.9232

0.9246

-0.16%

+4.34%

+0.9268

+0.9213 Sterling/Dollar GBP=D3

$1.3734

$1.3706

+0.22%

+0.53%

+$1.3776

+$1.3670 Dollar/Canadian CAD=D3

1.2570

1.2525

+0.39%

-1.26%

+1.2574

+1.2528 Aussie/Dollar

AUD=D3

$0.7612

$0.7618

-0.08%

-1.05%

+$0.7635

+$0.7596 Euro/Swiss

EURCHF=

1.0987

1.1000

-0.12%

+1.64%

+1.1015

+1.0976 Euro/Sterling

EURGBP=

0.8662

0.8679

-0.20%

-3.08%

+0.8695

+0.8641 NZ

NZD=D3

$0.7020

$0.7030

-0.10%

-2.20%

+$0.7049

+$0.7014 Dollar/Dollar

Dollar/Norway

NOK=D3

8.4940

8.4980

-0.13%

-1.16%

+8.5295

+8.4735 Euro/Norway

EURNOK=

10.1100

10.1120

-0.02%

-3.41%

+10.1310

+10.0910 Dollar/Sweden

SEK=

8.5847

8.5376

+0.58%

+4.74%

+8.5855

+8.5363 Euro/Sweden

EURSEK=

10.2170

10.1582

+0.58%

+1.40%

+10.2180

+10.1630

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ World FX rates

https://tmsnrt.rs/2RBWI5E U.S. dollar index

https://tmsnrt.rs/3d90u3v

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>

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