NVDA gained a massive 197% since our AI first added it in November - is it time to sell? 🤔Read more

FOREX-Dollar dips before inflation data, Treasury supply

Published 13/04/2021, 12:23 am
EUR/USD
-
USD/JPY
-
USD/CHF
-
USD/SEK
-
DX
-
BTC/USD
-

* Graphic: World FX rates https://tmsnrt.rs/2RBWI5E (Adds quote, context, updates prices; changes dateline, previous LONDON, byline)

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 Treasury yields held below recent highs before new supply.

The dollar's performance has been tied to U.S. Treasury yields for most of 2021, after concern about rising inflation in the United States and a stimulus-fuelled economic rebound triggered a jump in Treasury yields.

A fall in U.S. yields last week triggered the worst week for the dollar in 2021. Yields edged higher on Monday before the Treasury will sell $120 billion in new coupon-bearing supply this week, though they are holding below one-year highs reached last month. US/

U.S. consumer price data for March due on Tuesday is the next 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 COVID-19.

"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 also due on Thursday.

The dollar index =USD was last down 0.11% against a basket of currencies at 92.108. It is holding above a three-week low of 91.995 reached on Thursday.

The euro EUR=EBS gained 0.06% to $1.1908.

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. BTC=BTSP traded above $60,000, closing the gap to its record high.

Sterling GBP=D3 rose 0.26% to $1.3744 as traders cheered the latest phase of the British government's economic reopening plan.

The dollar fell 0.18% to 109.43 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.

========================================================

Currency bid prices at 10:08AM (1408 GMT) Description

RIC

Last

U.S. Close Pct Change

YTD Pct

High Bid

Low Bid

Previous

Change

Session

Dollar index

=USD

92.1080

92.2180

-0.11%

2.364%

+92.3310

+92.0070 Euro/Dollar

EUR=EBS

$1.1908

$1.1901

+0.06%

-2.54%

+$1.1919

+$1.1872 Dollar/Yen

JPY=D3

109.4250

109.6300

-0.18%

+5.94%

+109.7650 +109.2500 Euro/Yen

EURJPY=

130.29

130.47

-0.14%

+2.66%

+130.6100 +129.9000 Dollar/Swiss

CHF=EBS

0.9229

0.9246

-0.17%

+4.33%

+0.9268

+0.9228 Sterling/Dollar GBP=D3

$1.3744

$1.3706

+0.29%

+0.61%

+$1.3776

+$1.3670 Dollar/Canadian CAD=D3

1.2554

1.2525

+0.26%

-1.39%

+1.2567

+1.2528 Aussie/Dollar

AUD=D3

$0.7620

$0.7618

+0.03%

-0.94%

+$0.7635

+$0.7596 Euro/Swiss

EURCHF=

1.0990

1.1000

-0.09%

+1.69%

+1.1015

+1.0983 Euro/Sterling

EURGBP=

0.8662

0.8679

-0.20%

-3.08%

+0.8695

+0.8641 NZ

NZD=D3

$0.7030

$0.7030

+0.01%

-2.09%

+$0.7049

+$0.7014 Dollar/Dollar

Dollar/Norway

NOK=D3

8.4780

8.4980

-0.17%

-1.21%

+8.5295

+8.4735 Euro/Norway

EURNOK=

10.0955

10.1120

-0.16%

-3.55%

+10.1310

+10.0910 Dollar/Sweden

SEK=

8.5658

8.5376

+0.41%

+4.50%

+8.5730

+8.5363 Euro/Sweden

EURSEK=

10.1994

10.1582

+0.41%

+1.22%

+10.2065

+10.1630

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

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

https://tmsnrt.rs/3d90u3v

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

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.