FOREX-Dollar holds steady, pound hits 27-month low By Reuters


FOREX-Dollar holds steady, pound hits 27-month low

* Dollar overvalued; euro, yen, yuan in line – IMF

* Fed’s Beige Book on tap as traders expect U.S. rate cut

* Sterling slips to new 27-month low vs dollar

* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh (Updates market action, changes dateline, previous LONDON)

By Richard Leong

NEW YORK, July 17 (Reuters) – The dollar was little changed against most major currencies on Wednesday, pausing after prior day’s gains tied to stronger-than-forecast retail sales data, while the pound fell to 27-month lows versus the greenback on jitters about a no-deal Brexit.

The euro hit a one-week low against the dollar and towards the lower end of this year’s trading range, weighed down by expectations of easing from the European Central Bank and investors’ preference for the higher-yielding U.S. currency.

“It’s been a quiet midweek night of trade in FX with major holding steady around key levels after selling off against the dollar yesterday,” Boris Schlossberg, managing director of FX strategy at BK Asset Management wrote in a research note.

The euro fell to $1.1200 earlier Wednesday before clawing back up 0.06% to $1.1219.

The dollar was little changed at 108.19 yen.

The pound GBP=D3 fell to a fresh 27-month low of $1.2382 before rebounding to $1.2429. It also hit a fresh six-month low against the euro at 90.51 pence EURGBP=D3 . GBP/

An index that tracks the dollar against the euro, yen, pound and three other currencies was down 0.08% at 97.315 after touching a one-week high.

The greenback has strengthened since late June in response to better-than-expected data on U.S. jobs, inflation and retail sales. Its rise has been limited by firming signals from Federal Reserve officials of a possible rate decrease perhaps in two weeks to counter risk from global trade tensions and sluggish price growth at home.

U.S. interest rates futures implied traders fully expect the Fed to cut rates at its upcoming policy meeting on July 30-31 with a 35% chance for a half-point decrease, CME Group’s FedWatch tool showed.

Fed policy-makers will release an assessment of the economy with its latest Beige Book at 2 p.m. (1800 GMT).

Moreover, the International Monetary Fund on Wednesday said the greenback was overvalued by 6% to 12%, based on near-term economic fundamentals, while the euro, Japan’s yen and China’s yuan were seen as broadly in line with fundamentals. data on euro zone consumer price inflation, which was revised up to 1.3% year-on-year in June, failed to boost the euro. board member Benoit Coeure said the ECB was ready to act if necessary to help inflation in the euro zone move towards its aim of close to but below 2%. two ECB interest rate cuts of 10 basis points are priced in by money markets for 2019. ========================================================

Currency bid prices at 10:23AM (1423 GMT) Description

RIC

Last

U.S. Close Pct Change

YTD Pct

High Bid

Low Bid

Previous

Change

Session

Euro/Dollar

EUR=

$1.1217

$1.1209

+0.07%

-2.20%

+1.1222

+1.1201 Dollar/Yen

JPY=

108.1800

108.2200

-0.04%

-1.89%

+108.3200 +108.1200 Euro/Yen

EURJPY=

121.37

121.33

+0.03%

-3.84%

+121.4800 +121.2100 Dollar/Swiss

CHF=

0.9883

0.9877

+0.06%

+0.70%

+0.9907

+0.9872 Sterling/Dollar GBP=

1.2426

1.2403

+0.19%

-2.59%

+1.2433

+1.2383 Dollar/Canadian

1.3066

1.3086

-0.15%

-4.19%

+1.3093

+1.3052 Australian/Doll AUD=

0.7004

0.7012

-0.11%

-0.64%

+0.7020

+0.6997 ar

Euro/Swiss

EURCHF=

1.1089

1.1074

+0.14%

-1.47%

+1.1110

+1.1071 Euro/Sterling

EURGBP=

0.9026

0.9034

-0.09%

+0.47%

+0.9051

+0.9025 NZ

NZD=

0.6725

0.6700

+0.37%

+0.12%

+0.6728

+0.6698 Dollar/Dollar

Dollar/Norway

NOK=

8.5816

8.5727

+0.10%

-0.66%

+8.5933

+8.5719 Euro/Norway

EURNOK=

9.6271

9.6101

+0.18%

-2.82%

+9.6334

+9.6107 Dollar/Sweden

SEK=

9.3684

9.3884

-0.16%

+4.51%

+9.4048

+9.3650 Euro/Sweden

EURSEK=

10.5100

10.5269

-0.16%

+2.40%

+10.5367

+10.5080

https://tmsnrt.rs/2KdE2by GRAPHIC-Bets on bold first rate-cut from the Fed interactive

https://tmsnrt.rs/2Y3UHTf GRAPHIC-Bets on bold first rate-cut from the Fed

https://tmsnrt.rs/2XTkkpn GRAPHIC-Trade tensions boost U.S. rate-cut expectations interactive

https://tmsnrt.rs/2KdDNxa GRAPHIC-Euro 1-month implied volatility

https://tmsnrt.rs/2NYofAO GRAPHIC-Euro net short positions

https://tmsnrt.rs/32uh2f7 GRAPHIC-Bund yield set to fall below ECB deposit rate

https://tmsnrt.rs/2YqE2cu GRAPHIC-Bund yield set to fall below ECB deposit rate interactive

https://tmsnrt.rs/2YtKj7d

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



Source link

Spread the love