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FOREX-Dollar bounces off 2018 lows on economic outlook, euro profit-taking

Published 08/01/2021, 04:00 am
Updated 08/01/2021, 04:06 am
© Reuters.
EUR/USD
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GBP/USD
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USD/CHF
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USD/SEK
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USD/CNY
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DX
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US10YT=X
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BTC/USD
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BTC/USD
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* Control of both Houses gives Biden scope to push agenda

* Yuan edges lower against the dollar

* Dollar outlook mixed

* Graphic: World FX rates in 2021 https://tmsnrt.rs/2RBWI5E (Adds details, updates prices; changes byline, previous LONDON)

By Chuck Mikolajczak

NEW YORK, Jan 7 (Reuters) - The dollar rebounded from levels not seen since March 2018 to its highest in a week on Thursday, on the potential for an economic rebound and profit-taking by investors who had been betting on the euro.

The dollar index =USD , which measures the U.S. currency against a basket of peers, rose 0.581% at 89.835 after rising as high as 89.979 with the euro EUR= down 0.45% to $1.2269.

The dollar saw little movement on Wednesday as hundreds of President Donald Trump's supporters stormed the U.S. Capitol on Wednesday in a bid to overturn his election defeat, battling police in the hallways and delaying the certification of Democratic President-elect Joe Biden's victory for hours. the certification of Biden's victory has raised expectations for more fiscal stimulus measures to bolster the economic outlook and pushed longer-dated bond yields higher, with the benchmark 10-year US10YT=RR climbing above 1% on Wednesday for the first time since March. the rates start to move, as they did yesterday, it wasn't a big move but it was in the right direction, that is the direction of the future," said Joseph Trevisani, senior analyst at FXStreet.com.

"It's debatable on how long it is going to take for the vaccines to work and hopefully end the pandemic but once that happens you are going to get a much stronger U.S. recovery and that will lead to a stronger dollar."

Still, many analysts maintain a weaker long-term outlook for the dollar, and see the recent advance as the unwinding of bearish bets against the greenback, after it fell nearly 7% in 2020 and as much as 0.9% in the new year.

The yuan edged lower at 6.47 per dollar CNH=EBS after Chinese authorities signaled a desire for a slower pace of gains. remarks by the State Administration of Foreign Exchange (SAFE) on Wednesday follow an advance of around 10% on the greenback since last May as China's economic rebound has led the world's pandemic recovery.

Sterling GBP= was last trading at $1.3562, down 0.33% on the day as it continued to meander below the almost three-year high of $1.3703 touched on Monday.

Bitcoin BTC=BTSP marked a fresh all-time high as it approached the $40,000 mark on Thursday, and was last up 6.56% at $39,266.00.

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Currency bid prices at 11:07AM (1607 GMT) Description

RIC

Last

U.S. Close Pct Change

YTD Pct

High Bid

Low Bid

Previous

Change

Session

Dollar index

=USD

89.8350

89.3250

+0.58%

+0.00%

+89.9790

+89.2940 Euro/Dollar

EUR=EBS

$1.2270

$1.2328

-0.47%

+0.42%

+$1.2345

+$1.2245 Dollar/Yen

JPY=D3

103.8250

103.0400

+0.84%

+0.60%

+103.9500 +103.1000 Euro/Yen

EURJPY=

127.38

127.00

+0.30%

+0.36%

+127.4500 +126.9200 Dollar/Swiss

CHF=EBS

0.8845

0.8781

+0.73%

-0.02%

+0.8861

+0.8778 Sterling/Dollar GBP=D3

$1.3560

$1.3610

-0.37%

-0.75%

+$1.3632

+$1.3537 Dollar/Canadian CAD=D3

1.2713

1.2680

+0.28%

-0.15%

+1.2733

+1.2665 Aussie/Dollar

AUD=D3

$0.7753

$0.7806

-0.67%

+0.80%

+$0.7817

+$0.7726 Euro/Swiss

EURCHF=

1.0852

1.0826

+0.24%

+0.40%

+1.0862

+1.0826 Euro/Sterling

EURGBP=

0.9045

0.9055

-0.11%

+1.21%

+0.9077

+0.9016 NZ

NZD=D3

$0.7246

$0.7295

-0.70%

+0.88%

+$0.7304

+$0.7226 Dollar/Dollar

Dollar/Norway

NOK=D3

8.4315

8.4165

+0.34%

-1.65%

+8.4715

+8.4065 Euro/Norway

EURNOK=

10.3485

10.3680

-0.19%

-1.13%

+10.3785

+10.3325 Dollar/Sweden

SEK=

8.1976

8.1645

+0.02%

+0.01%

+8.2319

+8.1577 Euro/Sweden

EURSEK=

10.0585

10.0565

+0.02%

-0.18%

+10.0905

+10.0505

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