faisal6309
SENIOR MEMBER
- Joined
- Apr 27, 2012
- Messages
- 3,861
- Reaction score
- 8
- Country
- Location
Dollar inches higher but may soon fall back
LOS ANGELES (MarketWatch) The U.S. dollar ticked higher Monday after suffering some losses late last week, but several analysts forecast a move lower for the greenback in the days ahead.
Monday afternoon in East Asia saw the ICE dollar index DXY +0.09% , which measures the U.S. currency against a basket of six major rivals, inching up to 79.679 , compared to 79.649 late Friday in North America.
The WSJ Dollar Index XX:BUXX +0.11% , an alternative measure of the U.S. unit, ticked to 72.08, up from Fridays 72.03. Both indexes saw little movement Friday after chalking up losses Thursday.
Despite Mondays modest gains, Royal Bank of Canada senior currency strategist Sue Trinh noted that the dollar remained not far from its lowest levels of the year, with the market pricing in a delayed start to the Federal Reserves plan to slow the pace of its stimulus.
Such a delay to the Feds so-called taper was based on the central banks likely concern over another battle in the Congress that could again shut down government operations or threaten a U.S. default.
Our U.S. strategists base case is a March 2014 start to tapering, but a Feb. 7 debt ceiling suggests the risk is that tapering could be pushed out into the second quarter, Trinh wrote Monday, referring to the February date at which the current U.S. borrowing authority granted by Congress runs out.
Crédit Agricole strategists agreed, saying they expect a shift in consensus surrounding [the Federal Reserves] tapering commencement from the Dec. 18 ... meeting until January (or possibly later) to undermine the U.S. dollar next week.
They said the projected weakness for the dollar would be to the benefit of the euro, which could also gain as investors use the U.S. unit as a carry currency, borrowing in dollars to lend or invest in euros.
As a result, they said in a note Monday, the European currency could comfortably trade above $1.38 in coming weeks.
The euro EURUSD -0.02% was little changed Monday, buying $1.3675, down nominally from late Fridays $1.3680. The British pound GBPUSD -0.02% also moved sideways to $1.6165, against $1.6168 at the end of the previous week.
Among the top Asian currency pairs, the dollar rose against the Japanese yen USDJPY +0.31% to buy ¥98.01, up from ¥97.84 Friday, while the Australian dollar AUDUSD -.00% held at 96.69 U.S. cents, little moved from 96.67 U.S. cents.
Dollar inches higher but may soon fall back - Currencies - MarketWatch
LOS ANGELES (MarketWatch) The U.S. dollar ticked higher Monday after suffering some losses late last week, but several analysts forecast a move lower for the greenback in the days ahead.
Monday afternoon in East Asia saw the ICE dollar index DXY +0.09% , which measures the U.S. currency against a basket of six major rivals, inching up to 79.679 , compared to 79.649 late Friday in North America.
The WSJ Dollar Index XX:BUXX +0.11% , an alternative measure of the U.S. unit, ticked to 72.08, up from Fridays 72.03. Both indexes saw little movement Friday after chalking up losses Thursday.
Despite Mondays modest gains, Royal Bank of Canada senior currency strategist Sue Trinh noted that the dollar remained not far from its lowest levels of the year, with the market pricing in a delayed start to the Federal Reserves plan to slow the pace of its stimulus.
Such a delay to the Feds so-called taper was based on the central banks likely concern over another battle in the Congress that could again shut down government operations or threaten a U.S. default.
Our U.S. strategists base case is a March 2014 start to tapering, but a Feb. 7 debt ceiling suggests the risk is that tapering could be pushed out into the second quarter, Trinh wrote Monday, referring to the February date at which the current U.S. borrowing authority granted by Congress runs out.
Crédit Agricole strategists agreed, saying they expect a shift in consensus surrounding [the Federal Reserves] tapering commencement from the Dec. 18 ... meeting until January (or possibly later) to undermine the U.S. dollar next week.
They said the projected weakness for the dollar would be to the benefit of the euro, which could also gain as investors use the U.S. unit as a carry currency, borrowing in dollars to lend or invest in euros.
As a result, they said in a note Monday, the European currency could comfortably trade above $1.38 in coming weeks.
The euro EURUSD -0.02% was little changed Monday, buying $1.3675, down nominally from late Fridays $1.3680. The British pound GBPUSD -0.02% also moved sideways to $1.6165, against $1.6168 at the end of the previous week.
Among the top Asian currency pairs, the dollar rose against the Japanese yen USDJPY +0.31% to buy ¥98.01, up from ¥97.84 Friday, while the Australian dollar AUDUSD -.00% held at 96.69 U.S. cents, little moved from 96.67 U.S. cents.
Dollar inches higher but may soon fall back - Currencies - MarketWatch
