⏳ Final hours! Save up to 60% OFF InvestingProCLAIM SALE

FOREX-Dollar holds gains as expectations for Biden's stimulus grow

Published 14/01/2021, 07:58 pm
© Reuters.
EUR/USD
-
USD/JPY
-
USD/CHF
-
DX
-
BTC/USD
-
BTC/USD
-

* Biden to give details of "trillions" in spending Thursday

* Many analysts still expect dollar to resume declines

* Graphic: World FX rates https://tmsnrt.rs/2RBWI5E

By Julien Ponthus

LONDON, Jan 14 (Reuters) - The dollar held above three-year lows versus major peers on Thursday as expectations for President-elect Joe Biden's fiscal stimulus pushed yields of U.S. government bonds higher. 10-year Treasury yield rose after CNN reported the stimulus will be around $2 trillion, adding support for the dollar.

In early European morning trading, the dollar index =USD was little changed, up 0.04% at 90.320, as investors waited for Biden to give details later today of a plan for "trillions" of dollars in pandemic relief.

The dollar has risen in four of the past five trading sessions as the prospect of more stimulus has weighed on U.S. government bonds, sending the benchmark Treasury yield above 1% for the first time since March.

Expectations are already running high for the stimulus, but many analysts believe the spending push has already been priced in.

"We feel the fiscal cat is out of the bag already: it would take a lot to surprise markets after the re-pricing seen last week", ING analysts said. "The scope for the reflation trade to restart on the back of this announcement alone is limited."

Moreover, the currency's recent recovery is threatened by a build-up of bearish dollar positions. speculators have been net short the dollar since mid-March, as investors' surging appetite for riskier assets hurt demand for the greenback. U.S. stimulus supports risk sentiment, it could weigh on the dollar, which is considered a safe haven.

The euro EUR=EBS slipped 0.05% to $1.214 after sliding 0.4% on Wednesday.

The dollar advanced 0.13% to 104.02 yen JPY=EBS .

Bitcoin BTC=BTSP held on to 10% gains made on Wednesday after sliding almost $12,000 from last week's record high of $42,000. It rose 3% to $38,860 on Thursday, up from as low as $30,261.13 on Jan. 11.

Interest in the cryptocurrency has been soaring as institutional investors began buying heavily, viewing it as both an inflation hedge and as exposed to gains if it becomes more widely adopted. ========================================================

Currency bid prices at 8:31AM (831 GMT) Description

RIC

Last

U.S. Close Pct Change

YTD Pct

High Bid

Low Bid

Previous

Change

Session

Euro/Dollar

EUR=EBS

$1.2146

$1.2159

-0.10%

-0.59%

+1.2172

+1.2135 Dollar/Yen

JPY=D3

104.0400

103.8850

+0.17%

+0.75%

+104.1950 +103.8150 Euro/Yen

EURJPY=

126.37

126.28

+0.07%

-0.43%

+126.4900 +126.2300 Dollar/Swiss

CHF=EBS

0.8875

0.8875

-0.02%

+0.29%

+0.8892

+0.8869 Sterling/Dollar GBP=D3

1.3663

1.3637

+0.20%

+0.01%

+1.3678

+1.3620 Dollar/Canadian CAD=D3

1.2674

1.2701

-0.21%

-0.47%

+1.2706

+1.2670 Aussie/Dollar

AUD=D3

0.7753

0.7734

+0.26%

+0.80%

+0.7764

+0.7729 NZ

NZD=D3

0.7189

0.7175

+0.24%

+0.15%

+0.7206

+0.7173 Dollar/Dollar

All spots FX= Tokyo spots AFX= Europe spots EFX= Volatilities FXVOL= Tokyo Forex market info from BOJ TKYFX

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

https://tmsnrt.rs/2RBWI5E dollar

https://tmsnrt.rs/3oMz2fE

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

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.